RCM on Security Services

[Ethirajan Parthasarathy]

An individual is registered under GST. He has engaged the services of security agencies (which is a partnership firm). Their services are used for his residence which is personal expense. I am of the opinion that he is not liable for RCM tax. Please confirm..

AI Summary

Debate Over Reverse Charge Mechanism on Security Services for Personal Use by GST-Registered Individuals: Business or Personal Expense? An individual registered under GST inquires about the applicability of reverse charge mechanism (RCM) tax on security services used for personal residence. Opinions vary among respondents. One argues that RCM applies since the service provider is a partnership firm and the recipient is registered under GST, fulfilling conditions for RCM. Another suggests that personal use does not constitute business activity, thus RCM should not apply. References to GST provisions and notifications are used to support differing views on whether personal expenses by a registered individual trigger RCM obligations.