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.

Author Bio

Qualification: CA in Practice
Company: PAVAN S JOSHI AND CO
Location: PUNE, Maharashtra, IN
Member Since: 19 Jan 2019 | Total Posts: 4
CA Pavan Joshi is practicing chartered Accountant & senior partner in Pavan S Joshi & Co.He is having vast experience in GST,Direct Tax & other taxation compliance for MSME & Corporates. View Full Profile

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43 Comments

  1. A K GUPTA says:

    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.

  2. Mahesh M Gadekar says:

    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

  3. SHIKHA says:

    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????

  4. Aji Kumar M says:

    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.

  5. Vimal says:

    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

  6. Sijith says:

    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

  7. Somasundar says:

    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 )

    1. Sanjay says:

      If ABC is a registered GST supplier then XYZ has to pay GST, otherwise no GST can be charged by ABC if his turnover is within exemption limit.

  8. Sankar Das says:

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

  9. Karan says:

    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?

  10. snehal says:

    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

  11. Shubham Sundesha says:

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

  12. prathap says:

    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

    1. capavan says:

      No Circular specifically says that 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. So Housing keeping service is not under Reverse Charge.

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