GST impact on security guards

Hyderabad July 13: A new tax reform has been launched in India.
GST is being implemented in the country from July 1. However, some sector of people has made representations to the government these include private security agencies.

Currently, the government has imposed 18 % tax on the salary issued to security guards. Private security agencies have said that although it would not be a problem for us, but the companies which recruit security guards would lower the number of people because of higher taxes and so that the security will also be lowered.

The industry has also said that tax must be exempted on the EPF, ESI paid to the workers and only tax must be imposed on the commission given to the agencies by companies for utilizing security services. Associations said that the new tax would impact 70-75 lakhs workers.