Security guard bills often confuse accounts teams: who pays the GST — the agency or the client? This guide explains the basics so you can check your invoices. Always confirm your specific case with your chartered accountant.
SAC code and rate
Security services (including guard and patrol services) are classified under SAC 998525. The standard GST rate is 18%.
When reverse charge applies
Since January 2019, security services supplied by a person other than a body corporate (for example, a proprietorship or partnership firm) to a registered person are generally under reverse charge (RCM). In that case the client pays the GST directly to the government and can usually claim it as input tax credit, while the agency’s invoice shows that tax is payable under reverse charge.
There are exceptions — for example, certain government bodies registered only for TDS and composition-scheme taxpayers — and when the supplier is a company (body corporate) the normal forward charge applies.
What a correct invoice should show
- Agency name, address and GSTIN.
- Client name, address and GSTIN.
- SAC 998525 and the service description.
- Number of guards, shifts or guard-days and the rate.
- GST amount, or a clear note that tax is payable under reverse charge.
- Attendance sheet attached for the billing month.
Frequently asked questions
Can I claim input tax credit on security services?
Generally yes, if the service is used for your business and the conditions for ITC are met. Confirm with your CA.
Do unregistered clients pay GST under RCM?
No. Reverse charge for security services applies when the recipient is a registered person; for unregistered clients the agency charges GST in the normal way.
Related guides
- Security guard cost per month (2026)
- PSARA licence: why it matters
- How to choose the best security agency
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