From the date of implementation of GST, i.e. 1^st July 2017, GST on Security Service was payable by the service provider. But it was the case till 31^st December 2018, GST on Security Service was payable under Forward Charge Mechanism.

Payment of GST on Security Service on or after 1^st January 2019

CBIC Vide notification no. 29/2018 – Central Tax (Rate) dated 31^st December 2018, Reverse Charge Mechanism has been made effective to the Security Service.

GST is payable by the Service Receiver, in case all the below conditions are satisfied–

1. Description of Service–Security Service (services provided by way of supply of Security Personnel).
2. Service Provider–Any person other than a body corporate.
3. Service Receiver–A registered person located in the taxable territory.

The notification also provides the list of exception, i.e. Reverse Charge Mechanism will not apply in the following cases (i.e. in below cases, GST is payable by the Service Provider)–

1. A registered person paying tax under composition scheme; and
2. A Department/establishment of the Central/State Government or the Union territory; a local authority or a Government agency who has taken GST registration only for the purpose of TDS payment under Section 51.

The following table will clarify the Reverse Charge Mechanism for Security Service under different situation: