ITC related queries

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Our one client making fabrication stall for his clients. And our client taken security services for his clients at these events. Can our client taken ITC on amount paid to security service provider?

Replies (2)

Yes, ITC is available on GST paid on security services if the services are used for providing taxable supplies (fabrication/event services) and are not for personal consumption or blocked under Section 17(5).
If security services are covered under RCM, ITC can be availed only after payment of GST in cash and subject to other ITC conditions.

Nature of Use

  • Security services are arranged for clients’ events along with fabrication of stalls.

  • Such services are clearly in the course or furtherance of business → satisfies Section 16(1).

Blocked Credit Check – Section 17(5)

Security services are NOT covered under blocked credits such as:

  • Personal consumption

  • Works contract for immovable property

  • Food, beverages, club, health, etc.

✔ Hence, ITC is not blocked.

we paid gst to security service provider. in such case RCM not applicable. so can we take ITC?


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