Goods and Services Tax

RCM on Security Services

GST – Started By: – Ethirajan Parthasarathy – Dated:- 10-1-2019 Last Replied Date:- 12-1-2019 – An individual is registered under GST. He has engaged the services of security agencies (which is a partnership firm). Their services are used for his residence which is personal expense. I am of the opinion that he is not liable for RCM tax. Please confirm.. – Reply By KASTURI SETHI – The Reply = Dear Querist, It is taxable. The supplier of Service is other than body corporate (Partnership) and receiver is a registered person. (A person who is registered under GST is registered for business. He may use security service for residence.That is a separate issue) The condition of a registered person stands fulfilled). Rather both conditions stand fu

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as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. So, all the provision of the act will apply to recipient and in tax payable in relation to the supply. As per Sec 7(1) (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; Security service at home of registered person is not in the course or furtherance of business but its personal in nature. GST is basically tax on business. The said transaction is personal in nature. In my view GST on RCM will not be applicable. – Reply By KASTURI SETHI – The Reply = Regist

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