RCM on Security Charges applicable on inward supply of security charges
Dear Sir/Madam,
We, register regular tax payer under GST Act, have received security service from a registered supplier and values of the total contract in a year exceed 2.5 lakh.
Q1) form 01/01/2019 as per Notification No. 29/2018- Central Tax (Rate) liable to pay GST on reverse charge?
Q2) forms 01/01/2019 as per Notification No. 29/2018- Central Tax (Rate) liable to deduct TDS as per GST Act?
GST on Security Services: RCM Applies to Non-Corporate Providers; TDS Rules Limited to Govt Entities. A registered taxpayer inquired about the applicability of GST under the reverse charge mechanism (RCM) and Tax Deducted at Source (TDS) for security services received. It was clarified that from January 1, 2019, security services provided by entities other than body corporates to registered persons fall under RCM, requiring the recipient to pay GST. If the service provider is a body corporate, GST is charged on the invoice. TDS under GST applies to certain government entities and public sector undertakings, not to regular businesses, unless specified otherwise. Various experts confirmed these interpretations and discussed exceptions and specific scenarios. (AI Summary)
Goods and Services Tax - GST
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