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

[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

Security services by agencies not exempt from GST; fall under RCM unless provided to registered government bodies. A local body inquired whether manpower (security) services received from an agency are exempt under GST as pure services. The response clarified that while manpower and security services are considered pure services, security services are not covered under Article 243 W of the Constitution. Security services fall under the Reverse Charge Mechanism (RCM) as of January 1, 2019, but are excluded if provided to the government or local authorities registered for tax deduction under Section 51 of the CGST Act. Therefore, the security agency must pay GST, and no exemption is available based on the pure services classification.