Archive · 21 Aug 2025
Private Security Industry Appeals to PM Modi Over GST
The private security industry is asking the government to change how it's taxed.
They want the same tax rules for all companies, whether they're big corporations or smaller businesses.
Right now, some companies have to pay taxes differently, which the industry feels is unfair.
This means some businesses must pay the tax upfront, causing financial issues, especially for smaller businesses.
The industry says this harms their ability to operate effectively and compete fairly.
They've been fighting this for years and are asking the Prime Minister to fix it.
CAPSI has requested PM Modi to re-evaluate the 18% GST levied on the private security industry.
CAPSI is protesting against the Reverse Charge Mechanism (RCM) application, which they claim is unjust.
Under RCM, the recipient of goods/services pays GST; the normal method puts the onus on the supplier.
CAPSI says 'body corporate' entities are denied RCM benefits, unlike proprietary and partnership firms.
The GST Council decided to put security services on RCM, but a subsequent notification negated this for 'body corporates'.
- Who
- The Central Association of Private Security Industry (CAPSI) and the Prime Minister are involved.
- What
- CAPSI is requesting a re-evaluation of the 18% GST on the private security industry and protesting against the Reverse Charge Mechanism.
- When
- The Central Association of Private Security Industry (CAPSI) wrote to the Prime Minister on August 19, 2025.
- Where
- The issue concerns the private security industry in India.
- Why
- CAPSI believes the current GST structure is unjust and harms the financial viability of the industry.
CAPSI's View
Government Position
Unequal Tax Treatment
CAPSI's View
Denial of RCM to 'body corporates' creates unfair competition and impacts cash flow.
Government Position
No opposing viewpoint present in the article.
- Association
- Central Association of Private Security Industry (CAPSI)
- GST Rate
- 18%
- RCM
- Reverse Charge Mechanism
- Industry Workforce
- Over 8.5 million
- MSMEs
- Mainly comprising MSMEs
- Delayed Payments
- 60 to 90 days