Sub: Security services on under GST and TDS

This query is : Resolved

Hukam Chand (Querist)
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27 July 2022 Dear Experts, i want to know about the gst complinces for security and manpower services provide in case of company or other than company.
1. What is the GST rate for body corporate or other than body corporate?
2. What is HSN Code For Security and manpower services?
3. Tax invoice invoice format for security and manpower service provider?
4. Reverse charges mechanism and forward charges mechanism under gst for security manpower services under body corporate or other than body corporate?
5. who will deposited the tax like: suppllier or recipient in both case body corporate or other than body corporate?
6. which return and form filling monthly tax complience will follow by security services provider?
7. What is the time limit for payment and received under gst for security services provider body corporate or other than body corporate?
8. what is TDS obligation for security services provider in case of body corporate and other than body corporate ? and also tds threashold limit and tds rate?
9. please explain with me any one example which is covered my all question and also me any pdf file?
Thanks & Regards

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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11 July 2024 Managing GST compliance for security and manpower services involves several aspects. Let's address each of your questions:

1. **GST Rate:**
- Security and manpower services are categorized under SAC (Services Accounting Code) 998516. As per GST rules, the applicable GST rate is 18% on services provided to a body corporate (including companies) and 18% under forward charge mechanism for services provided to any other entity (other than a body corporate).

2. **HSN Code:**
- The HSN (Harmonized System of Nomenclature) code for Security and Manpower services is 998516.

3. **Tax Invoice Format:**
- A tax invoice issued by a security and manpower service provider should contain:
- Name, address, and GSTIN of the supplier
- Invoice number and date
- Name, address, and GSTIN of the recipient (if registered)
- Description of services provided
- HSN code of services
- Total value of supply
- GST rate and amount (CGST, SGST/UTGST, IGST)
- Place of supply (if interstate supply)
- Signature of the supplier

4. **Reverse Charge Mechanism (RCM) and Forward Charge Mechanism (FCM):**
- Under RCM:
- If the recipient of security services is a body corporate, they are liable to pay GST directly to the government instead of the supplier.
- Under FCM:
- If the recipient is not a body corporate (like individuals, partnership firms), the supplier charges GST and remits it to the government.

5. **Tax Payment Responsibility:**
- For services provided to a body corporate: GST is generally paid by the recipient under RCM.
- For services provided to others: GST is paid by the supplier under FCM.

6. **Monthly Tax Compliance:**
- Security services providers need to file monthly returns in GSTR-3B (summary return) and GSTR-1 (details of outward supplies).

7. **Payment and Receipt Time Limit:**
- GST is typically payable on a monthly basis by the 20th of the following month. For example, for transactions in April, GST is payable by May 20th.

8. **TDS Obligation:**
- Security services provided to a body corporate are subject to TDS (Tax Deducted at Source) under GST. The threshold limit for TDS is if the value of services exceeds ₹2.5 lakhs in a single transaction.
- The TDS rate is 2% (1% CGST + 1% SGST/UTGST) or 2% IGST if the recipient is in a different state.

9. **Example:**
- Let's say XYZ Security Services provides security guards to a company (body corporate) ABC Ltd. The monthly invoice amount is ₹1,00,000 + 18% GST. ABC Ltd, being a body corporate, will deduct 2% TDS (₹2,000) and pay ₹1,18,000 to XYZ Security Services. XYZ Security Services will issue a tax invoice to ABC Ltd and file monthly GST returns accordingly.

For detailed guidance and PDF resources, you can refer to the GST portal (gst.gov.in) and explore the GST Acts, rules, and notifications specific to security and manpower services.

Always consult with a tax professional or CA for specific advice tailored to your business situation and compliance needs.

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