Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Security services RCM Body Corporate

174 views 2 replies

CRR RR

42 Points Joined October 2024

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 (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

196324 Points Joined July 2016

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.

Rama chary Rachakonda

Master in Accounts & high court Advocate

8727 Points Joined December 2011

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.

CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register

Recent Threads

More recent discussions | Post

Related Threads