TaxTMI 
TaxTMI 
RCM on Security Services
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....CM on Security Services<br> Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 10-1-2019 Last Reply Date:- 12-1-2019 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>An individual is registered under GST. He has engaged the services of security agencies (which is a partnership firm). Their services are used for his residence which is personal expense. I am of the opinion that he is....
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.... not liable for RCM tax. Please confirm.. Reply By KASTURI SETHI: The Reply: Dear Querist, It is taxable. The supplier of Service is other than body corporate (Partnership) and receiver is a registered person. (A person who is registered under GST is registered for business. He may use security service for residence.That is a separate issue) The condition of "a registered person" stan....
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....ds fulfilled). Rather both conditions stand fulfilled. See Notification No. 29/18 CT(Rate) dated 31.12.18 (effective from 1.1.19) Serial No.14. Reply By Ganeshan Kalyani: The Reply: In my it is taxable under reverse charge. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Liable under reverse charge. Reply By SHARAD ANADA: The Reply: In my view it not taxable on RCM basis. Please refer Sec 9(3....
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....) of CGST Act 2017. Sec 9(3) is reproduced here under for your ready reference. (3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he ....
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....is the person liable for paying the tax in relation to the supply of such goods or services or both. So, all the provision of the act will apply to recipient and in tax payable in relation to the supply. As per Sec 7(1) (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by ....
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....a person in the course or furtherance of business; Security service at home of registered person is not in the course or furtherance of business but its personal in nature. GST is basically tax on business. The said transaction is personal in nature. In my view GST on RCM will not be applicable. Reply By KASTURI SETHI: The Reply: Registration under GST is not required for personal purpose/consu....
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....mption. . Registration is for the purpose of business only. If a person is registered with the department for any taxable supply of service or goods and he is receiving security services, he is liable to pay GST under RCM. Registration is the basic condition for applicability of RCM in respect of security service. Reply By SHARAD ANADA: The Reply: Sir, Prior to Deferment of sec 9(4) till 30.09.2....
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....018 Sec 9(4) read as under (4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or se....
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....rvices or both. Does it mean that a Registered proprietor purchase from unregistered person items like vegetables, clothes, payment made to house servant etc for his home he has to pay RCM on such supply. in my view he is not required to pay RCM on such supply. Same logic may also apply for security services as provision of sec 9(3) and 9(4) are similar. Reply By KASTURI SETHI: The Reply: Anal....
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....ogy does not come into picture. Here emphasis is to be laid on the language of notification dated 31.12.18 itself.<br> Discussion Forum - Knowledge Sharing ....