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 Goods and Services Tax - GST <br> Got 4 Replies <br> GST<br> <br> Dear Respected Members, We have two entities engaged in the business of supplying security guard services: * A Private Limited Company * A Proprietorship Firm Both provide se....
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....curity 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 Forward Charge or Reverse Charge Mechanism (RCM)? * Please mention the relev....
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....ant GST provisions/notifications supporting your answer. --Reply By: Shilpi Jain The Reply: Company to charge GST under FCM Proprietor when supplies to a registered person - liable under RCM. In other cases - i.e. is proprietor supplying to an unregistered person - to pay under FCM. --Reply By: Shilpi Jain The Reply: Though one more aspect to note is that the services should be by way of sup....
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....ply of security personnel --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 body corporate under Section 2(11) of the Companies Act, 2013. Since Entry 14 of Notification No. 13/2017-Central Tax (Rate) (a....
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....s 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 applicable GST. * It collects and pays GST to the Government. 2. Proprietorship Firm A proprietorship is not a body corporate. Accordingly, wher....
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....e 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), Entry 14, as amended. GST Treatment: * Registered recipient: RCM (recipient pays GST). * Unregistered recipient: Forward Charge (supplier charges GST). Summary Suppli....
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....er Recipient GST Mechanism Private Limited Company Registered / Unregistered Forward Charge Proprietorship Firm Registered Person Reverse Charge (RCM) Proprietorship Firm Unregistered 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 (sec....
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....urity services under RCM) --Reply By: KASTURI SETHI The Reply: 1. In the case of the Private Limited Company, should the monthly 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 i....
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....ssued under Forward Charge or Reverse Charge Mechanism (RCM) ? Ans. Under Reverse Charge Mechanism. * Please 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>***<br> Discussion Forum - Knowledge Sharing....