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GST charged on security services invoice

anonymous (proprietor) (249 Points)

04 June 2025

Mine is a Company. Now the partnership from which I take security services is charging GST on forward charge in the bill. As per law, I am liable to pay GST under RCM on the security services.

My query
1) Whether I still have to pay RCM on the security services when the firm has charged GST on forward charge
2) Can I claim input of the GST charged by the firm.

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3 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8479 Points)
Replied 04 June 2025

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.

1 Like

anonymous (proprietor) (249 Points)
Replied 05 June 2025

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.