https://www.taxtmi.com/forum/issue?id=119615 A refundable security deposit that does not influence rent is not taxable; if adjusted against rent or forfeited it becomes taxable as rent. Notional interest is taxable only when it affects rental consideration. If the lessor is registered, the lessor charges GST on rent; if unregistered, the lessee pays tax under the reverse charge mechanism. Refundable deposits are excluded from reverse charge unless adjusted to rent. Lease agreements should state refundability and non-impact on rent and valuation should follow market-value principles when taxability arises. en-us Tue, 18 Feb 2025 18:01:33 +0530 Tue, 08 Apr 2025 09:22:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=119615 A refundable security deposit that does not influence rent is not taxable; if adjusted against rent or forfeited it becomes taxable as rent. Notional interest is taxable only when it affects rental consideration. If the lessor is registered, the lessor charges GST on rent; if unregistered, the lessee pays tax under the reverse charge mechanism. Refundable deposits are excluded from reverse charge unless adjusted to rent. Lease agreements should state refundability and non-impact on rent and valuation should follow market-value principles when taxability arises. Discussion-Forum GST Tue, 18 Feb 2025 18:01:33 +0530 https://www.taxtmi.com/forum/issue?id=119615