Question ID :
36920
RCM On Security Services
From 1.1.19 Security Services have been brought under RCM u/s 9(3). Queries as below:
1. Is it mandatory RCM (i.e. security agencies cannot opt for Forward charge even if they are registered)? -- Appears to be mandatory RCM
2. What would be the position of Invoice raised on 1.1.19 for security services supplied in Dec 18. If Section 14 rationale is used, since Invoice and Payment both come after 1.1.19, Invoice will be subject to RCM GST and not forward charge GST
Posted by
Gaurav S Kenkre
on
Jan 03, 2019
Filed Under
GST
1. Yes, RCM on Security Services is Mandatory.
2. Invoice Date shall be the concluding factor for deciding whether or not RCM is applicable, as
(a) if Invoice is issued dated 31.12.2018 or before - it shall fall under Section 13(2) - FORWARD Charge shall apply.
(b) If Invoice is issued dated 01.01.2019 or thereafter - is shall fall under combined reading of Section 13 (3) and Section 14 - Both are Satisfied (if payment not made on or before 31.12.2018) hence - REVERSE Charge shall apply. (even if this is not the case of Rate Change, Section 14 appears to be most relevant to rely upon).
However, If Advance is paid on or before 31.12.2018 it shall be FORWARD Charge only.
Posted by
Ashish Kumar Goyal on
Jan 04, 2019
Answer ID :
76151
Govt. has goofed on this-confusion galore. From IDTC we will represent in due course:
1. If body corporate then forward charge can continue. However if not then it is advisable to stop payment. Ask client who is GST regd to pay. However for others who are not regd or in composition scheme or under TDS Govt etc ( see notification) continue to pay under forward charge.
2. You logic is correct. Please cancel the invoice as time is available. Ask those clients who are liable to return the invoice of if invoice booked to expunge it and not avail the credit. Ask them to pay GST.
Posted by
Madhukar N Hiregange on
Jan 08, 2019