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

Security deposit not consideration: refundable deposits not subject to GST unless applied as consideration under CGST definitions.
Security deposits provided as bank guarantees are refundable and do not constitute consideration under GST; they are not taxable unless the supplier applies the deposit as consideration for the supply. The factual nature of the deposit, its refundability, and any appropriation by the supplier determine whether GST liability arises.