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Security services

keshavamurthy mb (159 Points)

23 January 2020

security service under gst is examtion or not

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sidhu (Tax consultant) (70 Points)
Replied 23 January 2020

GST on Security Services (Applicable only from 01.01.2019):

With effect from 01.01.2019, any Registered Person receiving security services from any person other than a body corporate is required to pay GST on reverse charge basis.

Example : A (partnership firm) provide security service to B ltd (Service Recipient) - XYZ shall pay GST on Reverse charge basis.

If A is a body corporate, then RCM is not applicable. B ltd is required to charge GST in the invoice & collect GST from A ltd).

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PrabuSubramanianThangavelpilai (CA Article Assistant) (132 Points)
Replied 23 January 2020

With effect from 01.01.2019, Any Registered Person receiving security services, from any person other than a body corporate is required to pay GST on reverse charge basis.

For Example: XYZ being a partnership firm provide security service to ABC (Service Receiver) then GST liability is on ABC on Reverse charge basis.

But in the same example if XYZ is a body corporate then the case is normal to charge & XYZ will charge GST on invoice & collect GST amount from ABC & pay it to Government.