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1
SECURITY SERVICES
As per notification(29/2018) issued by GST
Council on 31-12-2018 security services were also
covered under the list of reverse charge
mechanism from 1-1-2019, however such services
were covered with some terms and conditions,
such terms and conditions had been explained with
the help of following table-
Service Provider Service Receiver Liable To Pay
Body Corporate Any unregistered/Registered Person Normal Charge
Any Person Other Than Body Corporate Any Register Person RCM Applicable
Any Person Other Than Body Corporate Composition Dealer Normal Charge
Any Person Other Than Body Corporate Govt. Agency/Local Authority/Govt. Dept. Normal Charge
Any Person Other Than Body Corporate Unregistered Person Normal Charge

• Consequences of Reverse Charge mechanism-
• If service is covered in reverse charge mechanism
  then in such service, tax liability will be
  deposited by service receiver to the dept.
• Secondly, recipient of servicewill issue payment
  voucher to the service provider.
• Thirdly, if service provider is not registered
  then in such condition recipient of service will
  issue Tax Invoice and payment voucher.
• Lastly, tax credit will be taken by recipient of
  service.
• Therefore we can conclude only those security
  services which fulfill all the above terms and
  condition are only covered under Reverse charge,
  if any shortfall exists then normal Charge will
  be apply. However, if Reverse Charge arise then
  all the above consequences will also arise and
  need to be fulfill.