RCM on Security Services applicable with effect from 1.1.2019


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RCM on Security Services applicable with effect from 1.1.2019

RCM on Security Services has been introduced in GST by the Government vide Notification No. 29/2018-Central Tax (Rate) dated 31.12.2018. W.e.f. 01.01.2019, any registered person receiving Security services (services provided by way of supply of security personnel) from any person other than a body corporate is required to pay GST on reverse charge basis.

However, Government Department/Establishment/Agency who have taken registration under GST only for TDS purpose and those paying tax under Section 10 (Composition Scheme) are not required to pay GST on RCM basis.

Therefore, if any registered person is receiving security services from any security agency (other than body corporate) he is required to pay GST on RCM basis w.e.f. 01.01.2019.

RCM on Security Services applicable with effect from 1.1.2019 : Notification No. 29/2018- Central Tax (Rate)

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue)

Notification No. 29/2018- Central Tax (Rate)

New Delhi, the 31st December, 2018

GSR……(E).- In exercise of the powers conferred by sub-section (3) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.13/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 692(E), dated the 28th June, 2017, namely:-

In the said notification,-

(i) in the Table,-

(a) against serial number 1, in the entry in column (2), after item (g), the following proviso shall be inserted, namely: –

“Provided that nothing contained in this entry shall apply to services provided by a goods transport agency, by way of transport of goods in a goods carriage by road, to, –

(a) a Department or Establishment of the Central Government or State Government or Union territory; or

(b) local authority; or

(c) Governmental agencies,

which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services.”;

(b) after serial number 11 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –

[su_table]

(1) (2) (3) (4)
“12. Services provided by business facilitator (BF) to a banking company Business facilitator (BF) A banking company, located in the taxable territory
13. Services provided by an agent of business  correspondent (BC) to business correspondent (BC). An  agent of business correspondent (BC) A business correspondent, located in the taxable territory.
14.

Security services (services provided by way of supply of security personnel) provided to a registered person:  

Provided that nothing contained in this entry shall apply to, –

(i)(a) a Department or Establishment of the Central Government or State Government or Union territory; or

(b) local authority; or

(c) Governmental agencies;

which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services; or

(ii) a registered person paying tax under section 10 of the said Act.

Any person other than a body corporate A registered person, located in the taxable territory.”;

[/su_table]

 (ii) in the Explanation, after clause (g), the following clause shall be inserted, namely:-

“(h) provisions of this notification, in so far as they apply to the Central Government and State Governments, shall also apply to the Parliament and State Legislatures.”.

2. This notification shall come into force on the 1st day of January, 2019.

[F. No. 354/428/2018- TRU]

(Gunjan Kumar Verma)

Under Secretary to the Government of India

Note: -The principal notification No. 13/2017 – Central Tax (Rate), dated the 28th June, 2017was published in the Gazette of India, Extraordinary, vide number G.S.R. 692 (E), dated the 28th June, 2017 and was last amended by notification No. 15/2018 – Central Tax (Rate), dated the 26th July, 2018 vide number G.S.R. 679(E), dated the 26th July, 2018.

Click here to read CBIC notifications on rate changes recommended by GST council in it’s 31st Meeting


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48 Comments

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    1. If, Service provider is Body of Corporate we did not pay RCM, & all other than Service Provider we have to pay RCM.
      Lokesh L

    2. No for rcm security services provider must be a un registrated under gst and the receipt must registrated wether he is regular or composite person

  1. If a private security agency is providing security services to Govt owned company(PSU) like ONGC, IOCL, NTPC etc. WHo is going to pay GST? Private security agency or the PSU?

    1. If the govt registration is only TDS deduction not for supply making then no rcm on govt the gst must be paid by govt to the security co.

  2. our company is Pvt Ltd and we get security service from proprietor firm, and security agency also registered with GST,
    So, RCM is applicable or not?

    1. Sir as per my understanding your question is that we need to fill which column of GSTR1 in case of security service in case of B2B transaction.
      The answer to this would be 4A, 4B 4C 6B and 6C -B2B

  3. if a security provider provides Housekeeping also. is it come under RCM. Bcoz for security he is not charging GST, but for housekeeping he is charging GST. Please clarify it.

  4. society receives security services form security agency which is also registered in GST. before notification they use to pay gst on services which society use to claim. now do society need to pay under rcm? pls clarify

  5. If Individual provide Security Services And he is also a registered person than RCM Applicable? Please tell about that with case clarification, If Any.

  6. Our security service provider is registered under GST and we also have GST Registration and both are regular . Is RCM is applicable to us. Kindly reply

  7. Hello
    If a security agency (other than body corporate) provide security service to unregistered person than RCM is applicable or not

  8. IF SECURITY SERVICE PROVIDER IS REGISTER IN GST AND RECEIVER IS ALSO REGISTERED IN GST SO RCM IS APPLICABLE OR NOT?

    1. Yes Sir
      Then also RCM will be applicable.
      Here for applicability of Forward charge mechanism, the service provider should be corporate entity as the words “Person other than body corporate” have been used.

  9. if police department is providing security service to government department like post office and post office is registered under gst and providing speed post and courier service on which post office is charging gst.
    Now in above care RCM is applicable to post office…??

  10. If A is a pvt. ltd. company providing security services to another B pvt. ltd. Please tell RCM would be applied or not?

  11. I am a Service Provider of Security Services and I have my Registration also . But after Notification I am Exempt from taxability .So,now should I file The Nil return or Cancel my Registration ? also what if i am providing services to unregistered person also

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