Finance Ministry to examine Private Security Industry demand for GST cut: MoS finance

The government is fully conscious of the significant contribution of the private security industry in creating jobs for the poor, he said.

NEW DELHI: The finance ministry will examine the private security industry's demand to cut GST rate from 18 per cent at present, Minister of State for Finance  Shiv Pratap Shukla said here. 

The government is fully conscious of the significant contribution of the private security industry in creating jobs for the poor, those that have migrated from the villages, and ex-servicemen, he said. 

"FICCI has given a representation on the issue and will convince the government to do whatever is possible to reduce the 18 per cent GST levied on the industry," quoted MOS in an event. MOS also invited a delegation of the industry to discuss the matter. 

There is a merit in the demand for reduction in GST rate to 5 per cent as this industry generates roughly 5 lakh jobs yearly, Rituraj Sinha, chairman of FICCI committee on private security industry, said at the event. 

Such relief, would also greatly benefit the small players who have to bear the burden of interest costs as they have to borrow to deposit GST in advance. 

Private Security has emerged as an essential service to support the government machinery in homeland security activities. With reduction in the GST tax rate from 18 per cent to 5 per cent, pressure from customers on manpower reduction is likely to ease significantly, resulting in job protection for private security guards. 

Lower Goods and Services Tax rate is also likely to boost volume of work orders, thereby paving way for demand expansion and resultant increase in skill development activities as well as employment generation by private security sector.