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RCM on Security Services under GST W.E.F. 01.01.2019

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Reverse Charge Mechanism (RCM) under GST on Security Services (Applicability from 01.01.2019) – 

RCM On Security Service has been introduced in GST by Government vide Notification No. 29/2018 – Central tax dated 31.12.2018.

Before Understanding RCM on Security Service let’s first understand difference between Normal Charge & Reverse Charge.

Normal Charge : In Normal Charge Supplier (Seller or Service Provider) Charge GST on Invoice & collect it from customer & pay it to Government.

Reverse Charge : Reverse Charge is mechanism where the Recipient of the goods and/or services is liable to pay GST instead of supplier.

GST Applicability on Security Service on or before 31.12.2018 : 

On or before 31.12.2018 Security service provider charge GST on invoice & collect GST from customer & pay it to Government so that means Security Service Provider was liable to pay GST .

GST Applicability on Security Service from 01.01.2019 : 

With effect from 01.01.2019 Any Registered Person receiving security services (Service provided by way of supply of security personnel) from any person other than a body corporate is required to pay GST on reverse charge basis.

For Example : ABC being partnership firm provide security service to XYZ (Service Receiver) then GST liability is on XYZ on Reverse charge basis.

But in the same example if ABC is a body corporate then the case is normal charge & ABC will charge GST on invoice & collect GST amount from XYZ & pay it to Government.

However, Government Department/Establishment/Agency who have taken registration under GST only for TDS purpose and those paying tax under Composition Scheme are not required to pay GST on RCM basis.

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Author Info

CA PAVAN JOSHI
Qualification: CA in Practice
Company: PAVAN S JOSHI AND CO
Location: PUNE, Maharashtra
Articles Published: 4

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47 Comments
  1. Sir,
    My Co is PVT LTD Company,
    how we pay GST ON (Security Guard)Man Power Service, as normal or RCM
    if RCM why
    Regards

  2. Sir, we are a housing society. our monthly maintenance charges is also less than Rs.7500 per month. We are not liable to regd under GSTN. we are taking security service from a properetorship firm who is not registered under GSTN.
    Pl advice weather we are unde RCM or to pay GST.

  3. Hi sir
    Ihave a government company iam receive security service from registered person whether rcm applicable and iam register regular

  4. Respected sir,
    We co-operative Housing society receive security Services from Proprietorship Firm. Can they charge GST on monthly Invoices for security services rendered.
    Kindly advise

  5. CAN WE CLAIM ITC IF WE PAID GST UNDER RCM ON SECURITY SERVICE AND SERVICE SUPPLIER IS ALSO REGISTERED BUT GST AMOUNT IS NOT REFLECTING IN 2-A, BUT BILLS ARE UPLOADED BY SUPPLIER WITHOUT GST????

  6. can we claim the ITC if service provider has charged the GST and we have made payment, the same is reflecting in GSTR-2A?

  7. We are a Security Service Provider and incorporated under the Companies Act 1956 (No 1 of 1956) and the company Limited. Being a Corporate Body company the RCM is applicable or not. If not, please specify the rules and act so that we can ask for GST from our client as they are not paying GST from last six month by saying that they are comes RCM and the client is also a Private Ltd Company.

  8. Sir if a public sector bank is receiving a security guard service from a registered service provider.how the gst treatment for the bill payable

  9. I am the proprietor of of a Maid Service Provider.In our case, we sells Maid service packages for residences ( individuals) . All the maid/maids we employ to execute the job for our client is paid by us. These no commission charged here. The buyer/client purchases/buy our Maid service package for a cost .All cost incurred including transportation and other expenses to execute the said job is borne by us . We have not crossed 20L turnover. Should be collect GST ? Are we covered under the ambit of Intermediary service

  10. in GST Portal Outward and Reverse Charge Inward Table 3.1 where should enter the RCM ( Security services ) amount ( 3.1 c or 3.1 D )

  11. If ABC is a individual providing Security Service to XYZ a trust not registered under GST, GST liab?

    1. ABC the supplier has to charge normal forward GST as usual to any person who is unregistered under GST Act and not having GST NO.,irrespective of his status as a person say individual, HUF, Firm, Trust etc.

  12. We are not Body Corporate but providing Security personnel to many Body Corporate and private individual. Have we to charge GST on our Invoice?

    1. No. Need to charge GST. But must charge GST for supply to unregistered persons like individuals etc

  13. What if Security services are provided by Proprietorship firm (registered person) to SEZ Unit (registered Person-LLP).. who will be liable to pay in this case?

  14. Hi sir
    My question is is Housekeeping charges under RCM in gst with the new notification w.e.f 01 Jan.

    As i am paying it in RCM to avoid the further audit review by officer

    so please guide me whether to pay or not to pay

    1. what if security service provider charge gst on FCM basis? what will be our liability for RCM???

  15. What if the Security Services are supplied by Registered Person to Unregistered Person, will then the supply be Exempt or taxed or Normal Charge?

  16. If a Security Guard Service Provider being a Partnership Firm, and provides / supplies Security Guards to another Firm or Sole Properitor concern, whether the Service Provider need to charge GST on the Invoice

  17. Hi, what if the security agency is also providing housekeeping services – will still GST be paid under RCM or it will be paid under FCM?

  18. What do you mean by body corporate

    Does private limited company form in India is covered under body corporate??

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