is man power (security) service received by local body exempted?, Goods and Services Tax - GST

[Naresh Mudireddy]

local body receiving man power(security) services from an agency. shall the local body claim exemption under 243 W treated it as pure service?

Posts / Replies

[KASTURI SETHI]

Manpower supply and supply of security services both are pure services. Security Services are not covered under Article 243 W of Constitution (Twelfth Schedule) Security service has been brought under RCM w.e.f. 1.1.19 [Notification No. 29/2018-C.T. (Rate), dated 31-12-2018] but Security Service supplied to Govt., Local Authority etc. has been excluded. RCM shall not apply if service provided to Govt. or Local Authority registered for the purpose of deducting tax under Section 51 of CGST Act.

In other words, Security Agency Services supplier will pay GST. No exemption on the ground of pure services.