Refund
This query is : Resolved
06 December 2019
Some one is providing security service but charging GST on his bill now one of his client asked him to refund all gst charged in his bill after jan 2019. Can he claimed refund from department on gst paid on security service because his service covered under RCM. He is Providing ONLY security service.
08 December 2019
If service provider is a registered dealer and charging GST on his bills, then GST service recipient no need to follow RCM rules.
15 December 2019
Rajamahendra Varma Sir
where its is written in law that if service provider is a registered dealer and charging GST on his bills, then GST service recipient no need to follow RCM rules.
where its is written in law that if service provider is a registered dealer and charging GST on his bills, then GST service recipient no need to follow RCM rules.
20 July 2025
Under GST law, if the service provider is registered and charges GST on the invoice, then the recipient does not need to pay tax under Reverse Charge Mechanism (RCM) on that supply.
This is because the supplier has discharged the tax liability by charging GST on the invoice. The recipient only needs to pay tax under RCM if the supplier is unregistered or GST is not charged on the invoice (and the supply is notified under RCM).
Legal reference:
Section 9(3) of the CGST Act, 2017: It states that the recipient shall pay tax on notified services under RCM if the supplier is not registered.
Explanation to Section 9(3): Tax is payable under RCM only if the supplier fails to pay GST.
Section 2(94) of CGST Act defines "supplier" as a person who supplies goods or services and is registered under GST.
So, practically:
If the security service provider is registered and charges GST on the bill, the recipient need not pay GST under RCM.
If the supplier incorrectly charged GST but the service is notified under RCM (and supplier should not have charged GST), then the recipient can ask for refund from supplier but cannot claim refund from the department on GST already paid.
The recipient cannot claim refund from department for GST paid to supplier — only the supplier can claim input tax credit or refund subject to law.
This is because the supplier has discharged the tax liability by charging GST on the invoice. The recipient only needs to pay tax under RCM if the supplier is unregistered or GST is not charged on the invoice (and the supply is notified under RCM).
Legal reference:
Section 9(3) of the CGST Act, 2017: It states that the recipient shall pay tax on notified services under RCM if the supplier is not registered.
Explanation to Section 9(3): Tax is payable under RCM only if the supplier fails to pay GST.
Section 2(94) of CGST Act defines "supplier" as a person who supplies goods or services and is registered under GST.
So, practically:
If the security service provider is registered and charges GST on the bill, the recipient need not pay GST under RCM.
If the supplier incorrectly charged GST but the service is notified under RCM (and supplier should not have charged GST), then the recipient can ask for refund from supplier but cannot claim refund from the department on GST already paid.
The recipient cannot claim refund from department for GST paid to supplier — only the supplier can claim input tax credit or refund subject to law.
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