As we know the security services play a vital role in every sector like technical Security Services, personal security services, event management security services etc. Also, it ensures to protect against crimes. From the date of the implementation of GST i.e 1st July 2017 till 31st December 2018, GST on security services was payable by the service provider.
The GST Council of India has introduced the GST on security services. The Council set the GST on security services based on Services Accounting Code, the services classification system developed by the preceding service tax department for levy of service tax. GST rate for services comes under five slabs namely 0%, 5%, 12%, 18% and 28%. Know more in detail –
Before discussing the GST on security services, you have to know some points regarding GST Registration for security services
GST Registration for Security Services
Most entities concerned in providing security services would have to obtain registration, as they would have an annual sales turnover above Rs.20 lakhs or be committed to providing an inter-state supply of aids. Also, all security service providers having an existing service tax registration would have to mandatorily complete GST Registration and obtain GSTIN. Finally, to perform a security service in India, the entity must have a security guard service license.
SAC Code applicable for Security Services & Investigation
The following SAC (Service Accounting Code) have been established for the various security services in India.
- SAC Code 998521 – Investigation services
- SAC Code 998522 – Security consulting services
- SAC Code 998523 – Security systems services
- SAC Code 998524 – Armoured car services
- SAC Code 998525 – Guard services
- SAC Code 998526 – Training of guard dogs
- SAC Code 998527 – Polygraph services
- SAC Code 998528 – Fingerprinting services
- SAC Code 998529 – Other security services
GST on Security Services in India
The above-mentioned SAC codes come under the category of 18% GST for application. That means it is the most of the services being rendered within India will be levied at a fixed rate of 18%.
GST Exemption
The following two varieties of security services are exempted in India:
- Security services rendered to an educational institution in the form of security, housekeeping or cleaning etc.
- Security services provided to any person or his family who is involved in a foreign diplomatic mission or consular post in India for his personal or professional use.
Note:- This exemption is accessible on a reciprocal basis based on a certificate issued by MEA.
In case, you need any sort of guidance related to the GST registration, GST return filing procedure, or any other GST compliance, please feel free to contact our business advisors at 8881-069-069.
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