TaxTMI 
TaxTMI 
GST taxability in case of supply of security gaurd services----Reverse charge or forward charge
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....ST taxability in case of supply of security gaurd services----Reverse charge or forward charge<br> Query (Issue) Started By: - milan bamal Dated:- 30-7-2026 Last Reply Date:- 30-7-2026 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>Dear Respected Members, We have two entities engaged in the business of supplying security guard services: • A Private Limited Company ....
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....€¢ A Proprietorship Firm Both provide security guard services to registered clients. I would like clarification on the following points: • In the case of the Private Limited Company, should the monthly invoice be issued under Forward Charge or Reverse Charge Mechanism (RCM)? • In the case of the Proprietorship Firm, should the monthly invoice be issued under For....
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....ward Charge or Reverse Charge Mechanism (RCM)? • Please mention the relevant GST provisions/notifications supporting your answer. Reply By Sanjeev Agarwal: The Reply: GST on Security Guard Services - Private Limited Company vs. Proprietorship The GST liability depends on whether the supplier is a body corporate. 1. Private Limited Company A Private Limited Company is a b....
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....ody corporate under Section 2(11) of the Companies Act, 2013. Since Entry 14 of Notification No. 13/2017-Central Tax (Rate) (as amended by Notification No. 29/2018-Central Tax (Rate)) applies only when the supplier is any person other than a body corporate, it does not apply to a Private Limited Company. GST Treatment: Forward Charge • The company issues a tax invoice charging a....
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....pplicable GST. • It collects and pays GST to the Government. 2. Proprietorship Firm A proprietorship is not a body corporate. Accordingly, where a proprietorship supplies security guard services to a registered person, GST is payable by the recipient under Reverse Charge Mechanism (RCM) under Section 9(3) of the CGST Act, 2017 read with Notification No. 13/2017-CT (Rate), Ent....
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....ry 14, as amended. GST Treatment: • Registered recipient: RCM (recipient pays GST). • Unregistered recipient: Forward Charge (supplier charges GST). Summary Supplier Recipient GST Mechanism Private Limited Company Registered / Unregistered Forward Charge Proprietorship Firm Registered Person Reverse Charge (RCM) Proprietorship Firm U....
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....nregistered Person Forward Charge Relevant Provisions • Section 9(3), CGST Act, 2017 • Notification No. 13/2017-Central Tax (Rate) dated 28.06.2017, Entry 14 • Notification No. 29/2018-Central Tax (Rate) dated 31.12.2018 (security services under RCM) Reply By KASTURI SETHI: The Reply: 1. In the case of the Private Limited Company, should the monthl....
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....y invoice be issued under Forward Charge or Reverse Charge Mechanism (RCM) ? Ans. Invoice is required to be issued under Forward Charge Mechanism because Private Ltd. Company is a body corporate. 2. In the case of the Proprietorship Firm, should the monthly invoice be issued under Forward Charge or Reverse Charge Mechanism (RCM) ? Ans. Under Reverse Charge Mechanism. • Please....
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.... mention the relevant GST provisions/notifications supporting your answer. Notification No.29/2018-CT(R) dated 31.12.2018 effective from 1.1.2019.<br> Discussion Forum - Knowledge Sharing ....