GST SECURITY SERVICES
This query is : Resolved
18 April 2024
MY CLIENT DOING THE RETAIL BUSINESS , THEY PAID THE SECURITY SERVICE CHARGES : 10000+18% GST , ONCE GST IS PAID THEN RCM IS APPLICABLE
19 April 2024
no. if the service provider himself is collecting and discharging GST liability, then the service receiver does not have to pay GST under RCM on the same service.
19 April 2024
what is the constitution of both service receiver and service provider?
13 August 2025
As per Notification No. 29/2018 – Central Tax (Rate) dated 31-12-2018, security services (excluding security services provided by a body corporate) are covered under RCM only when:
The service provider is not a body corporate, and
The service recipient is a registered person
In Your Case:
Has GST already been charged on invoice (₹10,000 + 18%)?
✅ Yes
That means:
The service provider has charged GST under forward charge
So, RCM is not applicable
⚠️ BUT – You Must Check Constitution of Service Provider:
If service provider is a Body Corporate (e.g., Pvt Ltd):
Forward charge is compulsory
RCM does not apply
If service provider is an Individual / Partnership Firm:
Then RCM applies (you, the receiver, must pay GST)
Provider should NOT charge GST on invoice
You must reverse any ITC taken on their invoice if they incorrectly charged GST
✅ Conclusion:
If the security agency is a Pvt Ltd or other body corporate, no RCM – you can accept the GST-charged invoice.
If it's a proprietorship or partnership firm, then RCM applies, and they should not charge GST.
👉 Action Required:
Please check the legal status (constitution) of the security service provider. That will determine whether:
RCM applies, and your client needs to pay GST directly, or
The provider can collect GST, and the invoice is valid
The service provider is not a body corporate, and
The service recipient is a registered person
In Your Case:
Has GST already been charged on invoice (₹10,000 + 18%)?
✅ Yes
That means:
The service provider has charged GST under forward charge
So, RCM is not applicable
⚠️ BUT – You Must Check Constitution of Service Provider:
If service provider is a Body Corporate (e.g., Pvt Ltd):
Forward charge is compulsory
RCM does not apply
If service provider is an Individual / Partnership Firm:
Then RCM applies (you, the receiver, must pay GST)
Provider should NOT charge GST on invoice
You must reverse any ITC taken on their invoice if they incorrectly charged GST
✅ Conclusion:
If the security agency is a Pvt Ltd or other body corporate, no RCM – you can accept the GST-charged invoice.
If it's a proprietorship or partnership firm, then RCM applies, and they should not charge GST.
👉 Action Required:
Please check the legal status (constitution) of the security service provider. That will determine whether:
RCM applies, and your client needs to pay GST directly, or
The provider can collect GST, and the invoice is valid
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