Security services RCM Body Corporate

Hi sir

Suppose a registered person receives Security services from a Company

The Company is unregistered under GST

Will the RCM provisions applicable on this transaction

Please advise

Thanks
Replies (3)
Quick Summary
This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) for GST on security services. If a registered business receives security services from a supplier who is not registered under GST, the registered business is generally liable to pay the GST under RCM. However, a key point is that RCM applies when the service provider is *not* a body corporate; if the security service is provided by a private limited or limited company, normal GST rules apply, and the supplier charges GST.

As per Section 9(4) of the CGST Act, 2017, and Notification No. 13/2017 - Central Tax (Rate), the recipient (registered person) is liable to pay GST under RCM on the security services received from the unregistered supplier.  RCM provisions are applicable on this transaction.

Yes, the Reverse Charge Mechanism (RCM) provisions would be applicable in this case.

As per GST regulations, if a registered person receives services from an unregistered supplier, the recipient is required to pay GST under RCM. In this scenario: -

 The recipient (registered person) is required to pay GST on the security services received from the unregistered supplier (Company). -

The recipient should report this transaction in their GST returns and pay GST on the value of services received. 

However, please note that there are some exceptions and additional considerations: -

 If the security services are received from an unregistered supplier whose aggregate turnover is less than ₹20 lakhs (₹10 lakhs in special category states), RCM may not apply. -

 If the services are received from an unregistered supplier located outside India, the recipient may need to comply with other GST provisions, such as the "reverse charge" mechanism.

RCM on security services has one condition that is often misread.

Notification 13/2017-CT (Rate) says RCM applies when security services are provided by ANY person OTHER THAN a body corporate. The condition is on the SERVICE PROVIDER, not the recipient.

So:
- Provider is a proprietorship, partnership, LLP, or individual: RCM applies to the recipient if the recipient is a registered person. It does not matter whether the recipient is a body corporate or not.
- Provider is a Pvt Ltd or Limited company (a body corporate itself): Normal forward charge applies. The agency charges GST at 18% on their invoice, and you claim ITC on that invoice.

For ITC when RCM applies: you pay the GST directly to the government in GSTR-3B Table 3.1(d), issue a self-invoice to yourself, and then claim ITC in Table 4A in the same or next return period.

This [GST on security services RCM guide](taxgarden.in/blog/gst-on-security-services-agency-rcm-india-2026) has the full notification reference and applicability table. (Add https:// before posting.)

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