Security Services

[Guest]

In our case, we have an invoice with the company name called ABC security services and they provided man power services and charging CGST & SGST. We have informed them that the GST will be paid us under RCM basis for security services but they have told us their company name is security services and they providing staffs for manpower not security services . Which one is correct? .

Thanks in advance

[KASTURI SETHI]

Your supplier, ABC Security Services is correct. Do not go by the name. You are to go by the exact nature of service being provided.Manpower recruitment or supply is not under RCM. Only Security Services have been brought under RCM vide No. 29/2018-C.T. (Rate), dated 31-12-2018 (effective from 1-1-2019 ) at serial no.14 , any registered person receiving Security services (services provided by way of supply of security personnel) in the taxable territory, from any person other than a body corporate is required to pay GST on RCM basis.

Security agency is not manpower supply. Both are entirely different. See the difference between the two.

“manpower recruitment or supply agency” means any [person] engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, [to any other person];]

“security agency” means any [person] engaged in the business of rendering services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel;

In Service Tax era also both the services were classified under separate Service Tax Accounting Codes.

[Ganeshan Kalyani]

Your supplier has raised invoice with GST for the supply of manpower supply service. This service is under forward charge where supplier is responsible to charge GST and pay it to the Govt. The invoice raised is correct. I agree with the views of Sri Kasturi Sir.

[YAGAY andSUN]

We duly endorse the views of Experts that in this matter, GST is required to be paid under RCM.

AI Summary

Security services RCM applies when service is supply of security personnel; manpower supply remains under forward charge. Services supplying security personnel constitute security services and, when supplied in the taxable territory by a person other than a body corporate, attract tax under the reverse charge mechanism (RCM). Manpower recruitment or supply is a distinct service category treated under forward charge, with the supplier required to charge and remit GST. Classification depends on the exact nature of the service, not the supplier's trade name.