Supply of Security Services (Private Security Agency) to an educational institution

[Silu Jose]

Sirs,

Whether security services rendered by a private security agency to an educational institution established by a regimental fund of the Armed Forces (ie their income is exempt from income tax u/s 10 (23AA) is exempt from GST.

The institute conducts a four year graduation course in Hotel Management to students of retired/serving Army personnel.

Please share circular/notification reference in this regard.

Thank you

AI Summary

GST exemption for security services not available to degree-level educational institutions; reverse charge applies only if recipient is registered.
Notification No.12/2017 exempts security services only for institutions up to higher secondary; degree-level institutions do not qualify. Security services were shifted to the reverse charge mechanism where the provider is non-corporate and the recipient is a registered person; if the recipient is unregistered, the provider must charge GST under the forward charge mechanism. Income tax exemption does not affect GST eligibility.