APPLICABILITY OF RCM ON SECURITY SERVICES

[SURYAKANT MITHBAVKAR]

Whether RCM is applicable on Security services.

[Nitesh Jain]

Unless specifically mentioned, date of issuance of notification.

[KASTURI SETHI]

Yes. RCM is applicable in respect of Security Services. See Notification No.29/18-CT(R) dated 31.12.18 (effective from 1.1.19 )amending Notification No.13/17-CT(R) dated 28.6.17.

[Rajagopalan Ranganathan]

Sir,

Notification No. 29/2018-C.T. (Rate) dated 31.12. 2018 amended Notification No. 13/2017-C.T dated 28.6.2017 by inserting entry No.14 in the table appended to Notification No. 13/2017, by which security service (by way of supplying security personnel) is chargeable to gst under RCM with effect from 1.1.2019.

 

[Ganeshan Kalyani]

The rate of tax is 18%. And input tax credit is eligible subject to conditions .

AI Summary

Reverse charge mechanism applies to security services, making supply of security personnel taxable under RCM and eligible for input credit. Reverse Charge Mechanism applies to security services supplied by providing security personnel pursuant to Notification No.29/2018 amending the prior notification, making such supplies chargeable under RCM with effect from the notification's effective date; the tax rate is 18% and input tax credit is available subject to statutory eligibility conditions.