New Delhi: Red-flagging the devastating impact of GST implementation of security agencies, the Central Association of Private Security Industry (CAPSI) demanded to streamline of GST rules for the survival of the industry, which employs over 80 lakh people across the country.
Explaining about the depressing impact of GST roll-out on the sector, CAPSI chairman Kunwar Vikram Singh said, "The major issue which is forcing owners to close down their business is the methodology of depositing GST as it has to be deposited by the security agencies on 20th day of the Month in which the bill has been raised."
"As security agencies get payment from their clients only after 60-90 days and sometimes it takes more time, it affects on the cash flow of this low-margin industry due to months delay in getting payments. We have to carry this huge back-breaking burden," Singh further said, adding, "We have made several representations to the Finance Ministry and to the GST Commissioner demanding to streamline of the GST mechanism for the sector."
While suggesting a remedy to this problem, Singh said, "The logical
remedy to this problem is the introduction of 'reverse charge mechanism', which is being allowed for other industries. It will help in reducing the financial burden on owners of private security agencies."
The private security industry is one of the largest job providers employing over 80 lakh people, mostly retired personnel from the armed forces and para-military forces.