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GST Rates

GST on Security Services (Rates, Reverse Charge & SAC Code)

Security guard and agency services attract 18% GST under SAC 998522. When a security agency provides services to a government entity, GST is paid under the Reverse Charge Mechanism (RCM) by the government department — not the security agency. For private sector clients, the agency charges 18% GST directly.

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GST on Security Agency Services

Client Type GST Rate Who Pays
Private companies / individuals 18% Security agency charges client
Government bodies / PSUs 18% (RCM) Government self-assesses and pays
Housing societies (registered) 18% Security agency charges society
Housing societies (exempted — see note) Exempt up to ₹7,500/month per member Nil

Important

RWAs and housing societies are exempt from GST on security services if the monthly maintenance per member is below ₹7,500 and the society's annual turnover is below ₹20 lakh.

Security Agency GST Invoice Requirements

Security agencies must issue monthly tax invoices to clients showing: agency GSTIN, SAC code 998522, number of security guards deployed, daily rate or monthly charge, and 18% GST breakdown (CGST + SGST or IGST depending on states). For government clients, the invoice should note "GST payable by recipient under RCM" — no GST is charged on the invoice face. Security agencies can claim ITC on guard uniforms (5% GST), communication equipment, and vehicle costs used for providing security services.

Example

A Hyderabad security agency deploys 10 guards at a corporate park for ₹30,000 per month. GST at 18%: CGST ₹2,700 + SGST ₹2,700 = ₹5,400. Total monthly invoice: ₹35,400. The corporate park claims ITC of ₹5,400. For a government PSU client: same ₹30,000 invoice, no GST charged — PSU pays ₹5,400 under RCM.

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FAQs

What is the GST rate on security guard services?

18% GST (SAC 998522) on security guard services provided to private entities. For government clients, 18% is paid by the recipient under RCM.

What is RCM for security services to government?

When a security agency provides services to a government body, the government self-assesses 18% GST and pays it directly — the agency does not charge GST on the invoice.

Do housing societies pay GST on security services?

Exempt if monthly maintenance per member is under ₹7,500 and society turnover is under ₹20 lakh. Above these thresholds, 18% GST applies.

Can security agencies claim ITC?

Yes — on uniforms (5% GST), equipment, vehicles, and office expenses used for providing security services.

Why Businesses Stop Using Excel for GST Invoices

Manual GST calculation mistakes

One wrong CGST/SGST split or a misapplied rate triggers notices and ITC denial for your buyer.

Slow invoice creation

Copying last month's Excel file, updating dates, recalculating — 20 minutes for what should take 30 seconds.

Formatting breaks on every device

Excel invoices look different on every printer and PDF converter. Clients complain about unreadable layouts.

No easy sharing or payment link

Sending PDFs over WhatsApp with no way for clients to pay directly slows down collections.

Incorrect tax type (IGST vs CGST+SGST)

Excel can't auto-detect intra vs inter-state supply. Wrong tax type = ITC rejected for your buyer.

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Disclaimer: The information in this article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. GST rules and rates are subject to change. Consult a qualified CA or tax professional before making compliance decisions.

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