Reverse charge

This query is : Resolved

Kaustubh Ram Karandikar (Querist)
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10 April 2019 XYZ(Proprietor) is registered with GST for the Security Services provided to PQR (Pvt. Ltd. Company) registered with GST. XYZ is charging GST on which PQR is taking credit. Is this correct or XYZ cannot charge GST and PQR need to pay GST under reverse charge and then take input tax credit on it?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 April 2019 Vide Notification No. 29/2018-Central Tax (Rate) dated 31.12.2018 provides for the payment of tax in respect of security services under reverse charge mechanism (RCM).
In the per-view of the above Notification it can be said that since XYZ( proprietor) is not a body corporate , he is not required to charge GST in respect of supply of services on or after 01.01.2019 to a registered recipient. It is clear from the notification that in such cases where the supplier is not a body corporate registered recipients (PQR) has to pay GST under RCM.