The registered dealer is also receiving rent from a Licensee and GST @18% is paid every month. My query is whether a GST is also applicable on interest free refundable security deposit taken at the time of execution of leave and license agreement?
Reply
No, GST is not applicable on refundable security deposit. As per proviso of section 2 (31) of CGST Act, 2017, 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.
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