Respected Members,
Kindly guide on the following query:
Brief Fact:
the person is a Resident welfare association registered under Societies Registration Act, 1860. It's source of funds is monthly maintenenace collected from residents and also from advertisement, canopy.
The monthly maintenance is less than ₹ 7500/- per member. and annual turnover is also less than ₹ 20 lac.
RWA deploys security guards through a security agency (proprietorship).
Query:
1. whether RWA is required to deposit gst on RCM basis on Security Services ? in terms of Section 9(3) of the CGST Act ?
2. Whether security agency can charge gst in his bill raised to RWA ?
Thanks & Regards
Experts Debate RWA's GST Obligation for Security Services Under CGST Act Sections 9(3), 22, 23, 24 A discussion on a forum centers around whether a Residents Welfare Association (RWA) needs to register for GST and pay tax under the Reverse Charge Mechanism (RCM) for security services. The RWA's monthly maintenance per member is below 7500, and its annual turnover is under 20 lakh. Various experts provide differing opinions: some argue that if the security agency is not a body corporate, the RWA must pay GST under RCM, while others suggest that if the RWA is unregistered, the security agency should pay the GST. The debate touches on interpretations of Sections 9(3), 22, 23, and 24 of the CGST Act, and the need for a clarifying government circular is highlighted. (AI Summary)
TaxTMI 
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