is man power (security) service received by local body exempted?

[Asked by Guest]

local body receiving man power(security) services from an agency. shall the local body claim exemption under 243 W treated it as pure service?

[KASTURI SETHI]

Manpower supply and supply of security services both are pure services. Security Services are not covered under Article 243 W of Constitution (Twelfth Schedule) Security service has been brought under RCM w.e.f. 1.1.19 [Notification No. 29/2018-C.T. (Rate), dated 31-12-2018] but Security Service supplied to Govt., Local Authority etc. has been excluded. RCM shall not apply if service provided to Govt. or Local Authority registered for the purpose of deducting tax under Section 51 of CGST Act.

In other words, Security Agency Services supplier will pay GST. No exemption on the ground of pure services.

AI Summary

Reverse charge on security services excludes government/local authority supplies, so supplier remains liable for GST.
Manpower supply and security services are pure services. Security services were placed under the reverse charge mechanism, but services supplied to government bodies or local authorities registered for tax deduction are excluded from RCM; in those cases the supplier must pay GST. A local body cannot claim exemption simply by treating the service as a pure service; liability depends on the statutory exclusion and the recipient's registration status for tax deduction.