RCM on Security services

[Kaustubh Karandikar]

As per Sr. No. 14 of Notification No.13/2017 Central Tax (Rate), if a security service is received from any person other than a body corporate, by a registered person, such registered person is liable to pay GST under reverse charge. XYZ is a cooperative housing society not registered with GST being below the threshold limit. Therefore, XYZ even if receives security service from a proprietory concern, since XYZ is not a registered person, XYZ is not liable to pay GST under reverse charge. Is my understanding correct? Views of the experts please.

AI Summary

Cooperative Housing Society Not Liable for GST Reverse Charge on Security Services if Unregistered under Section 24. A discussion on a forum addressed whether a cooperative housing society, not registered for GST, is liable to pay GST under reverse charge for receiving security services. The consensus among participants was that since the society is not registered under GST, it is not liable for reverse charge on security services. Experts noted that compulsory registration under Section 24 is not triggered unless the recipient is registered. It was suggested to seek departmental advice or an advance ruling for clarity. The discussion also touched on similar issues with Residents Welfare Associations and the threshold exemption for registration.