Liable to pay RCM under security charges ?

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This discussion clarifies whether Reverse Charge Mechanism (RCM) applies to security guard services. RCM is applicable if the security guard service provider is not a body corporate, and the recipient of the service is registered under GST and located within the taxable territory.

Ikramuddin Saifi

Ikramuddin Saifi (Querist)
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06 July 2022 Dear Sir,
My Security Guard Service provider (Radhey & Co.(Regd.) having the GST number, but he doesn't tax the bill. My question is- How to treat it? RCM will applicable or not?? What do we consider a service provider? Registered or Unregistered?? Thanks- Ikramuddin Saifi

Udaya Chandran

Udaya Chandran (Expert)
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07 July 2022 If the service provider is not a body corporate and the service recipient is a registered person, RCM will be applicable.

CA Puja Sharma

CA Puja Sharma (Expert)
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07 July 2022 RCM will apply only if the Security guard agency is other than body corporate and the recipient is registered under GST and in taxable territory.

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