Become GST Expert

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

The Topic is Divided into the Following Headings:

1. What is Security Services
2. Charge Under GST
3. Time of Supply
4. Exemptions If any

1. What is Security Services

There is no Such Definition provided by CGST Act, 2017. The only place in GST where the little description of Security services is given in CGST (Amendment) Act, 2018 where it says,"Services provided by way of supply of security personnel".

But however in the Preceding Relatable law i.e. Service Tax law it was defined very well,as per section 65(94) of Finance Act 1994,"security agency” means any [person] engaged in the business of rendering services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel.

GST implications on security services

2. Charge Under GST

GST was applicable on Security services w.e.f. 01/07/2017 under Forward Charge Mechanism. 

But considering the numerous problems in tax collection from small security service providers, such service has been brought under the purview of RCM. Hence, RCM on Security Services has been introduced in GST by the Government vide Notification No. 29/2018-Central Tax (Rate) dated 31.12.2018 with effect from 01.01.2019.







Security services (services provided by way of supply of security personnel) provided to a registered person:

Provided that nothing contained in this entry shall apply to, –

(i) (a) a Department or Establishment of the Central Government or State Government or Union territory; or

(b) local authority; or

(c) Governmental agencies;
which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of
goods or services; or

(ii) a registered person paying tax under section 10 of the said Act (Composition tax Payer).

Any person other than a
body corporate

A registered person,
located in the taxable

As per CGST Act 2017, Body Corporate Includes A LLP or A Company incorporated outside India but does not include;

a) A co-operative Society registered under any law relating to Co operative Societies: and,
b) any other body corporate as may notified by the Govt.

3. Time of Supply (Under RCM)

The time of supply will be the earlier of the following dates:
a) date of payment as per books of account or date of debit in bank account, whichever is earlier; or
b) the date immediately following sixty days from the date of issue of invoice by the supplier.


Where it is not possible to determine the time of supply from above 2 options then time of supply shall be the date of entry in the books of accounts of the recipient of supply.

4. Exemptions If any: 

There is no particular Section or Provision for Exemption of Security Services but by reading the whole act following are the indirect exemptions:

a) Security services provided to Educational institution (Pre-School and Up to Higher Secondary School or equivalent)


It is to be Noted that If a Hospital or any other Institute Registered under Section 12AA of the Income tax act,1961 receives Security services, it will not be exempt.

Further, Services provided by Police or Security agencies of Govt to PSU/Corporate entities/Private entities are not exempt.


Published by

CA Ankit Kumawat
Category GST   Report

1 Likes   12 Shares   5445 Views


Related Articles


Popular Articles

GST Course
caclubindia books caclubindia books

CCI Articles

submit article