Private security industry has demanded immediate implementation of ‘Reverse Charge Mechanism’ for GST payments.
It wants the service receiver to be made liable for making the GST payment directly to the Government.
Those running private security agencies should not be “burdened” with GST payment, the Central Association of Private Security Industry (CAPSI), an industry body representing private security agencies, said in a statement here.
Owners and employees of private security industry on Wednesday staged a silent protest at the India Gate. They demanded streamlining of the GST rules for the industry, especially when many private security agencies are facing closure due to financial burden. Similar protests were organised in all State capitals across the country by CAPSI members.
“We have made several representation to the Finance Ministry and to the GST Commissioner demanding streamlining of the GST mechanism for our industry. The major issue, which is forcing owners to close down their companies, is the methodology of depositing GST,” CAPSI Chairman Kunwar Vikram Singh said.
He said GST has to be deposited by the security agencies on the 20th of a month in which Bill has been raised. However, the payment of these Bills is received by these agencies only after 60-90 days or more, Singh said.
“Thus, cash flows of this low-margin industry gets impacted seriously due to 2-3 months delay in getting payments,” he said.
Source:- Thehindubusinessline.com
