We have paid security deposit to one of our client. but the client has given invoice by charging gst on security deposit amount.
whether gst applicable on deposit?
if yes can we avail the input credit?
please advise.
3 Replies
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 28 June 2019
No ..... As per Section 7 CGST security not cover under supply & R/w proviso in sub section 31 of Section 2 of CGST , Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply.
Hence No GST applicable on Security
Hence No GST applicable on Security
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 04 July 2019
thank you for the information
Ravi SADhiyan
(Practice)
(4510 Points)
Replied 04 July 2019
Agree with Mr. Pankaj Sir Advice.........
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