Question ID : 39326

GST on damages caused by the tenant

While the tenant vacates, the Landlord with holds certain sum, towards damages caused by the tenant. Is Landlord (who is GST registered) liable to pay GST on such sum recovered from the tenant.

Yes, GST applicability will depend on facts which may be either of the following: a) if invoice towards repair charges issued (by any contractor hired) is addressed to Tenant but paid out of deposit amount held by Landlord, then NO GST to be charged on the deduction out of deposit because contractor would have charged GST under HSN 9954 and merely payment is flowing via Landlord from deposit held b) if amount is deducted by Landlord and repair charges are incurred on own account, then GST to be charged under HSN 9997 - tolerating breach by Tenant