GST on Security Services : FAQs

By | January 21, 2019
(Last Updated On: January 21, 2019)

As per NN-29/2018-CT(R ) Dated 31.12.2018, RCM appliacble on Security Service provided by person other than body corporate to any registered person located in taxable territory

Q: Security Services have been brought under RCM u/s 9(3). Is it mandatory RCM (i.e. security agencies cannot opt for Forward charge even if they are registered)?

Answer : yes mandatory to pay RCM by Recipient. Security agencies cannot opt for Forward charge even if they are registered

Q. What would be the position of Invoice raised on 1.1.19 for security services supplied in Dec 18. If Section 14 rationale is used, since Invoice and Payment both come after 1.1.19, Invoice will be subject to RCM GST and not forward charge GST

Answer. Security Service provider  he has to charge GST in his invoice (for December 2018) – take certificate from him that he has deposited tax with Government .

Q: GST on security service will be charged on reverse charge basis. If security service provided to unregistered person whether RCM applicable and based on this whether unregistered person need to take registration as because Sec. 24 mandates to take registration if person need to pay tax on reverse charge basis ?

Answer : In fact in that case the security service provider himself is liable under Forward charge basis.

Q:  As per NN-29/2018-CT(R), RCM appliacble on Security Service provided by person other than body corporate to any registered person located in taxable territory then RCM is applicable . Thus if provider of such service is other than body corporate then he should go for cancellation of his GSTIN after such notification.?

Answer : He can go for cancellation after filing all returns and paying all taxes .

Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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