GST implication on Security deposits

[Rajesh Kumar]

Sir ,

A taxpayer provides GTA and courier services. He has provided bank guarantees as security to their customers. Is there any gst implication on this amount of security?

regards

AI Summary

GST Not Applicable on Refundable Security Deposits for GTA and Courier Services Under Section 2(31) of CGST Act. A taxpayer providing GTA and courier services inquired about the GST implications on bank guarantees given as security to customers. Three responses addressed the query. The first response clarified that security deposits are refundable and not considered as 'Advance Amount', thus not subject to GST as per Section 2(31) of the CGST Act. The second response confirmed no GST liability on such amounts. The third response suggested the inquirer provide more details for further expert analysis.