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What is the Goods and Services Tax (GST) impact on a key security deposit payment?

April 26, 2017deposit GST impact key payment security Services tax

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What is the Goods and Services Tax (GST) impact on a key security deposit payment?

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ATO Position According to Section 99-5(1) of the GST Act, there is no consideration in relation to the giving of a key security deposit. However, if the key is subsequently lost and the deposit forfeited, there will be a supply to the extent of the deposit forfeited. This supply will then be subject to the GST. The GST must be remitted in the period in which all or part of the security was applied.