RCM on security personnel

[KARAN VERMA]

Sir

My individual contractor provide manpower service to limited company-

1. Staff in accounts and HR department

2. Labour for shifting of material

3. Security guard in the factory and office premises.

My question is whether RCM applicable on all above three type of manpower supply or only on security guard service. Kindly provide your opinion.

[KASTURI SETHI]

Only Security Service is under RCM under GST

[Shilpi Jain]

Right sir. The RCM entry states security service by way of supply of security personnel would be liable under RCM.

So if you are not a body corporate then the supply of security person alone would be liable under RCM.

[KASTURI SETHI]

Yes. The condition of 'receiver must be body corporate' has been in force since Service Tax era.

[Ganeshan Kalyani]

Yes, only security service is covered under RCM subject to a condition that the recipient must be a body corporate and provide must be other than body corporate.

AI Summary

Clarification on GST Reverse Charge Mechanism: Applies Only to Security Services, Not All Manpower Services Provided. An individual contractor provides manpower services to a limited company, including staff for accounts and HR, labor for material shifting, and security guards. The query seeks clarification on whether Reverse Charge Mechanism (RCM) under GST applies to all these services or only to security guard services. Responses indicate that RCM applies solely to security services, contingent upon the recipient being a body corporate and the provider not being one. This condition has been in place since the Service Tax era.