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TMI BlogRCM on Security servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... RCM on Security services X X X X Extracts X X X X X X X X Extracts X X X X ..... erse charge. XYZ is a cooperative housing society not registered with GST being below the threshold limit. Therefore, XYZ even if receives security service from a proprietory concern, since XYZ is not a registered person, XYZ is not liable to pay GST under reverse charge. Is my understanding correct? Views of the experts please. Reply By Rajagopalan Ranganathan: The Reply: Sir, I agree with you ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r understanding. However under Sl. No. 1 of Notification No. 13/2017 as amended any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India is liable to pay the tax under RCM in respect of GTA service. Here there is no condition that the said cooperative society is registered under GST Acts. In spite of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said society is liable to pay tax on GTA service availed by them under RCM. Therefore in my opinion, it is better to take opinion of the Department before hand or from the Advance Ruling Authority. Reply By Ganeshan Kalyani: The Reply: Sec. 24 provides for compulsory registration. In that clause (iii) provides that a persons who are required to pay tax under reverse charge. This means the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson who is required to pay tax under RCM need to take registration under GST. Reply By Shilpi Jain: The Reply: For the liability to attract under this entry, the pre-requisite is that the recipient should be a registered person. So if he isin't registered then no liability. Compulsory registration u/s 24 will not attract. @Karandikar sir - your view is correct. Reply By Kaustubh Karandik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar: The Reply: Thanks to all the respected experts fo your kind advice. Reply By Amit Agrawal: The Reply: I hold similar view that Section 24 (iii) does NOT force any unregistered person - who is otherwise not liable to take registration either u/s 22 or due to Section 23 - to take GST registration merely because it is recipient of "Security services (services provided by way of supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... security personnel)" from 'any person located in the taxable territory'. You may also refer to very lengthy debate we had under Issue ID 117679 bearing subject-line as 'RCM provisions on RWA (Residents Welfare Association)' where various aspects of the controversy were thoroughly discussed. These are ex facie views of mine and the same should not be construed as professiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l advice / suggestion. Reply By Kaustubh Karandikar: The Reply: Thanks Amit ji for your advice Reply By KASTURI SETHI: The Reply: In this scenario, both Service Provider and Service Receiver are enjoying threshold exemption and it is legally correct. Reply By Ganeshan Kalyani: The Reply: Sec.22(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: The above provides for registration of a taxpayer under GST if his turnover exceeds the threshold limit. Sec. 24 : Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be required to be registered under this Act,- (i) ...... (ii) ....... (iii) persons who are required to pay tax under reverse charge; This section provides that even if the turnover is less than the threshold limit the taxpayer is required to take registration if he is liable to pay tax under reverse charge. In view of the above provision I interpreted that registration is required. How ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, thanks to expert colleague to clarify that this provision is not applicable as the RCM notification says that only registered recipient will be liable to pay tax under RCM for security service. Since the society is not registered the RCM notificaiton is not applicable. Reply By KASTURI SETHI: The Reply: Dear Sh.Kalyani Ji, Acceptance (of correct position) is a virtue (high moral standard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) in your personality. X X X X Extracts X X X X X X X X Extracts X X X X
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