GST charged on security services invoice

Reverse Charge Mechanism (RCM) on Security Services As per GST law, security services provided by an unregistered person or a partnership firm to a registered person (your company) are subject to RCM. Your Queries

1. *RCM Liability When GST is Charged by the Firm*: If the partnership firm has already charged GST on a forward charge basis, you (the recipient) are not required to pay GST under RCM. The supplier (partnership firm) is responsible for paying the GST.

 2. *Claiming Input Tax Credit (ITC)*: Yes, you can claim ITC of the GST charged by the firm, provided you have a valid tax invoice and have paid the GST amount to the supplier. Ensure that the supplier has deposited the GST amount in their electronic cash ledger and filed the GST returns. Key Points to Consider 

- *GST Invoice*: Ensure the partnership firm provides a valid GST invoice. -

 *GST Payment and Filing*: Verify that the supplier has paid the GST and filed the necessary returns. -

 *ITC Eligibility*: You can claim ITC only if the supplier has paid the GST and filed the returns. Recommendations -

*Verify Supplier's GST Compliance*: Ensure the supplier is compliant with GST regulations. 

- *Claim ITC*: Claim ITC of the GST charged by the firm, if eligible. By understanding the RCM and ITC rules, you can ensure compliance with GST regulations and claim eligible input tax credits.

As per my understanding, since mine is a Company, I am bound to pay tax under RCM on security services inspite of the service provider charging GST on forward charge.

GST on Security Services is to be charged on forward charge basis incase of Services provided by Body corporate, otherwise RCM is applicable.

In your case Service provider is a partnership firm i.e other than Body Corporate, hence RCM is applicable on the same.

Where Service Provider charges GST on Forward charge Basis, Service recipient is not relieved from paying under RCM.

Hence you are required to pay RCM as you continue to do so, Also, you can claim ITC on GST charged by your service provider.

Hope this clarifies your doubt. Do contact incase of an issue.