Your understanding is partially correct but requires a key distinction regarding the status of the recipient.
Under the Reverse Charge Mechanism (RCM) for security services (specifically the supply of security personnel), the liability to pay GST is determined by the legal status of the service provider and the service recipient.
The Rules for RCM on Security Services:
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Service Provider: Must be "any person other than a body corporate" (e.g., an individual, a proprietorship, or a partnership firm).
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Service Recipient: Must be a registered person under the GST Act.
Applying this to your situation:
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Does the supplier's turnover matter for RCM?
Actually, no. The RCM notification for security services is triggered by the nature of the recipient (i.e., they must be a "registered person"). It does not grant an exemption based on the supplier's turnover. Even if the security agency's turnover is below the registration threshold, the recipient is still liable to pay the GST under RCM if the recipient is already a registered person.
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Is the recipient required to pay under RCM?
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If the recipient is a registered person under GST: Yes, the recipient is liable to pay the GST under RCM. The fact that the supplier is below the threshold limit and not charging GST on the invoice does not exempt the recipient from this liability.
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If the recipient is NOT a registered person: RCM does not apply. If the recipient is unregistered, they do not pay tax under RCM. The supplier (the security agency) would only be liable to collect and pay GST under the Forward Charge Mechanism if their own turnover exceeds the prescribed registration threshold.
Summary
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If you are registered under GST: You are required to pay the GST under RCM on the security services you receive, regardless of whether the supplier's turnover is below the threshold.
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If you are NOT registered under GST: You are not required to pay GST under RCM.
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Threshold Note: The "threshold limit" for GST registration applies to the supplier's liability to register and pay tax under the Forward Charge. It does not act as a shield for a registered recipient to avoid RCM.
Summary: If you are a registered person under GST, you are liable to pay GST under RCM for security services received from a non-body corporate, even if the supplier's turnover is below the registration threshold. If you are not a registered person, RCM does not apply.