ITC related queries

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)
Quick Summary
This discussion clarifies whether Input Tax Credit (ITC) is available for GST paid on security services used by a client providing fabrication and event services. The consensus is that ITC is generally available if these services are used in the course or furtherance of business and are not for personal consumption or specifically blocked under GST law. Since GST was paid directly to the security service provider (not under Reverse Charge Mechanism), ITC can be claimed, provided other ITC conditions are met.

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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