Whether GST is applicable on security guard services provided by police department to banking sector
The following is the extract of notification no. 13/2017 (central tax rate) Services on which tax is to be paid by recipient of service under reverse charge.
service supplied by the Central Government, State Government, State Government or local authority to a business entity excluding—
(1) Renting of immovable property, and
(2) Services specified below—
(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority; (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers.
After perusal of above provision, we are of opinion that GST is applicable on Security guard service provided by Police department (As central or state government) to banking sector (as a business entity) under reverse charge attracting 18% GST rate.