RCM on Security Charges applicable on inward supply of security charges

[chandan bera]

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?

AI Summary

Reverse charge on security services: recipient pays GST when supplier is not a body corporate; otherwise supplier invoices GST.
From 01.01.2019, security services supplied by persons other than a body corporate to a registered recipient are taxable under the reverse charge mechanism and the recipient must pay GST; no threshold exemption applies. If the supplier is a body corporate, the supplier charges GST on the invoice and RCM does not apply. Specified exceptions (government departments, local authorities, government agencies registered only for TDS purposes, and composition scheme taxpayers) are excluded from RCM. Tax deduction at source under GST is a separate regime limited to specified government or notified deductors and does not apply to ordinary taxpayers like partnership firms unless they are so notified.