Discover the latest updates on GST for security services, including the GST rate, SAC Code, and the Reverse Charge Mechanism (RCM) changes since January 2019. Previously, security services operated under the forward charge mechanism, but they now fall under the RCM.

The GST on security services is fixed at 18%. Those handling RCM responsibilities must carefully manage their GST invoices, incorporating Service Accounting Code details and necessary documentation.

Effective from January 1, 2019, any registered entity receiving security services from a non-body corporate must pay GST under the RCM. However, government agencies or local authorities registered solely for Tax Deducted at Source (TDS) and entities under the composition scheme are exceptions to this rule.

RCM applicability on security services doesn't consider the threshold of Rs.20-40 lakh for registered entities. For unregistered service recipients, the supplier handles GST via forward charge, irrespective of corporate status. The recipient must still pay under RCM. Proper registration under the GST Act is necessary for this.

Security services are classified under SAC codes as follows:
- Investigation services: 998521 (18% GST)
- Security consulting services: 998522
- Security systems: 998523
- Armoured car services: 998524
- Guard services: 998525
- Training of guard dogs: 998526
- Polygraph services: 998527
- Fingerprinting services: 998528
- Other security services: 998529

The time of supply under RCM involves the earliest date among payment, 60 days post-invoice issue, or entry in the recipient’s books. For instance, security services provided in August with payment on 10th October will have the time of supply as 10th October.

Forward charge mechanism applies if security services are rendered to unregistered entities, composition dealers, or government agencies registered for TDS and if provided by a body corporate.

Input Tax Credit (ITC) on GST for security services can be availed if used for business or taxable supplies. Unregistered suppliers necessitate a self-invoice for ITC claims.

Certain security services are GST exempt: services for educational institutions, diplomatic missions, or consular posts, given an MEA certificate is filed with the GST council.

An advanced ruling by Haryana AAR specifies that Limited Liability Partnerships (LLPs) are a body corporate regarding tax, exempting their security services to registered persons from RCM.

Keeping abreast with GST on security services is vital for compliance and seamless operation. These changes underscore the necessity for staying informed about GST rules in the security services industry.