Deposit is not consideration :
A deposit, whether refundable or not, given in respect of the supply of goods or services or both shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply – proviso to section 2(31) of CGST Act.
Normally, term ‘deposit’ is used when amount is refundable and term ‘advance’ is used when amount is adjustable (and not refundable). However, definition of ‘consideration’ envisages non-refundable deposit also.
GST is payable when advance is received. Hence, instead of receiving advance from customer, it is advisable to receive ‘deposit’. In that case, GST will be payable only when such deposit is adjusted against supply.
However, this will raise issued under Companies Act, 2013.