Security Services under Reverse charge mechanism

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Security Services included in Reverse charge mechanism w.e.f 1st January 2019

If any GST registered persons receives Security services (services provided by way of supply of security personnel) from a Security Agency who is not registered as a Company, then the receiver is liable to pay GST on such services, under reverse charge mechanism. The Security agency is not liable to collect and pay GST.

Even if the Security Agency is registered under GST, the liability falls on the service receiver to discharge the liability under this provision of GST law.

The GST paid by the receiver is eligible for claiming as input Tax credit.

For better understanding the provision is illustrated below:

Sl no

Service Receiver

Constitution of Security Agency (Service Provider)

Liability to discharge GST

1

Any  registered person

Individual

Receiver

2

Any  registered person

Partnership Firm

Receiver

3

Any  registered person

Trust/ Society etc

Receiver

4

Any  registered person

Company

Security Agency (Service Provider)

Posted on 02/01/2019
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