RCM provisions on RWA (Residents Welfare Association)

[PANKAJ CHUGH]

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

AI Summary

Reverse charge on security services: recipient liability and GST registration hinge on recipient's registration status.
Whether an RWA must discharge GST under reverse charge for security services depends on Notification No. 13/2017 and the CGST Act: the notification makes the recipient liable where the supplier is not a body corporate and the recipient is a registered person in the taxable territory, so an RWA that is registered and receives such services must pay tax under reverse charge; by contrast, where an RWA is unregistered due to exemption or turnover below threshold, commentators contend the supplier must account for tax under forward charge and the RWA may not be obliged to register solely because it receives security services.