SECURITY SERVICES
This query is : Resolved
12 February 2020
ONE OF PERSON IS ENTER INTO A VENTURE WITH A COMPANY TO PROVIDE THE COMPANY SECURITY GUARDS. HE REGISTERED UNDER GST. WILL HE LIABLE TO PAY GST FOR THIS SERVICES. I HAVE READ SOMEWHERE THE COMPANY HAS TO PAY GST UNDER REVERSE CHARGE REGIME?
WILL HE NEED TO FILE NIL RATE OF RETURN EVERY MONTH?
WILL HE NEED TO FILE NIL RATE OF RETURN EVERY MONTH?
CA Piyush Agarwal
(Expert)
12 February 2020
With effect from 01.01.2019 Any Registered Person receiving security services (Service provided by way of supply of security personnel) from any person other than a body corporate is required to pay GST on reverse charge basis.
For Example : ABC being partnership firm provide security service to XYZ (Service Receiver) then GST liability is on XYZ on Reverse charge basis.
But in the same example if ABC is a body corporate then the case is normal charge & ABC will charge GST on invoice & collect GST amount from XYZ & pay it to Government.
However, Government Department/Establishment/Agency who have taken registration under GST only for TDS purpose and those paying tax under Composition Scheme are not required to pay GST on RCM basis.
For Example : ABC being partnership firm provide security service to XYZ (Service Receiver) then GST liability is on XYZ on Reverse charge basis.
But in the same example if ABC is a body corporate then the case is normal charge & ABC will charge GST on invoice & collect GST amount from XYZ & pay it to Government.
However, Government Department/Establishment/Agency who have taken registration under GST only for TDS purpose and those paying tax under Composition Scheme are not required to pay GST on RCM basis.
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