Tax Charged by Supplier ( Security Services)

[RAMNIRANJAN KANDOI]

Dear Sir,

Security Service provider (Sole Proprietor) is registered under GST and has raised invoice by charging 18% GST. Service provided to a Pvt Ltd Company.

The recipient of the service, paid the total amt including the GST amt to the service provider (Security Service provider)

During audit, objection is raised that recipient of service should have paid RCM and claimed ITC. What is the way out? Is there any favourable case law available?

AI Summary

Dispute Over GST Payment: Should Company Have Used Reverse Charge Mechanism for Security Services? A security service provider, registered under GST as a sole proprietor, invoiced a private limited company with an 18% GST charge. The company paid the full amount, including GST. During an audit, an objection was raised, suggesting the company should have applied the Reverse Charge Mechanism (RCM) and claimed Input Tax Credit (ITC). Responses suggested that once tax is paid by one party, it should not be taxed again for another, and recommended obtaining a declaration or a CA certificate from the security agency confirming tax payment.