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.

Whether you can claim ITC on the GST charged on a security services invoice depends on the legal form of the provider.

CASE 1: Provider is a body corporate (Pvt Ltd, Limited company): Forward charge is correct. You can claim ITC on the 18% GST they have charged, subject to the usual conditions, invoice reflected in GSTR-2B, payment made to supplier within 180 days, and goods or services used for business purposes.

CASE 2: Provider is NOT a body corporate (proprietorship, partnership, LLP): Under Notification 13/2017-CT (Rate), RCM applies. The provider should NOT have charged GST on their invoice. If they did, that forward-charge GST is NOT eligible for ITC.

In Case 2, you need to:
1. Ask the provider to issue a credit note and cancel the forward-charge invoice
2. Pay the GST under RCM in GSTR-3B Table 3.1(d) yourself
3. Claim ITC on the RCM payment in Table 4A in the same or next return

If the provider refuses to issue a credit note, you still owe the RCM amount to the government. Paying twice is avoidable only if the provider cooperates.

This [GST on security services RCM guide](taxgarden.in/blog/gst-on-security-services-agency-rcm-india-2026) has the notification reference and a flowchart for registered vs unregistered providers. (Add https:// before posting.)

Your understanding is correct:

• Security services supplied by a partnership firm (not a body corporate) to a registered body corporate are under RCM (Notf 13/2017-CT(R), Entry 14, from 1 January 2019). The supplier should not charge GST. The company pays 18% under RCM.

• If the supplier wrongly charged GST on the invoice:

– You still must pay RCM. Tax collected under forward charge does not discharge the RCM liability.

– ITC on the forward-charged GST is not available. It isn't tax "due" (Sec 16(2)), and the supplier wrongly collected it.

– Ask the supplier to issue a credit note for the GST portion (Sec 34) or a revised invoice without GST, with the declaration "Tax payable on reverse charge basis".

– The supplier can claim a refund of tax wrongly paid (Sec 54/77).

• Pay RCM in cash through GSTR-3B Table 3.1(d), self-invoice within 30 days (Rule 47A), and claim ITC in Table 4A(3).

• TDS: Sec 194C at 2% on the base amount.