GST Council of India has hooked GST rates on security services in India on the basis of SAC or Service Accounting Code. SACs are codes decided by service tax department by classifying the security services to ease the imposition of the tax. There are 5 different tax rates under the Goods and Services Tax (GST), which are: 0%, 5%,12%,18% and 28%.
GST Registration and Compliance Requirements for Security Services
Security guard service license is mandatory for every personnel involved in providing security services.
As far as GST registration is concerned, it becomes compulsory when the entities have these conditions:
- The annual turnover exceeding 20 lakhs
- The securities are being served inter-state
GST migration and obtaining GSTIN is also mandatory when security service providers are already having service tax registration.
SAC Code applicable for Security Services & Investigation
The following SAC (Service Accounting Code) have been defined 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 Rate for Security Services in India
The above-mentioned SAC codes fall under the category of 18% GST rate application. That means, GST on most of the security services being provided within India will be levied at a fixed rate of 18%.
A taxable person under GST must be careful to mention the correct SAC code while raising GST tax invoice.
GST Exemption for Security Services
The following two kinds of security services are exempted from GST in India:
- Security services provided to an educational institution in the form of security, housekeeping or cleaning etc.
- Security services provided to any person or his family who is engaged in a foreign diplomatic mission or consular post in India for his personal or professional use.
This exemption is available on reciprocal basis based on a certificate issued by MEA.
So, this is all there is about GST rates and applicability to security services in India. The tax rate on various security-related services has been fixed at 18%.