The Goods and Services Tax in India that is hailed as one of the most successful accomplishments of the current Government turned one year old on 30 June 2018. The imposition of GST regime has echoed a mixed bearing on the service sector. On one hand, it is beneficial in various aspects such as one country one tax mode, seamless flow of credit, avoidance of multi-taxation etc., on the other it has produced snags in ease of doing business. The Private Security Industry in particular, which is one of the largest employment generating industries in India making a workforce of over 7 million personnel is not going well along with the GST executions. They have shown utter disappointment with the regime and raised strong objections on the GST implementation. Amongst others, the major impediment stems from the fact that GST is due to be deposited on the 20th day of every month while private security agencies receive payments for their respective services after 60 to 90 days; in the interim, however, they are mandated to meet the statutory compliances without fail. The gap between the business module of the private security industry and the imposed GST compliance regulations has created an unpleasant state of affairs for the industry.
Central Association of Private Security Industry (CAPSI), the preeminent organisation for private security professionals in India have made several representations with the Government to amiably reach out to a rational reconciliation, but they could not fructify well. The CAPSI delegations knocked the doors of the Secretary, GST, CCI and MSME to suggest them to enable the system of reverse charge mechanism for security. Although the delegations at each stage were given a patient hearing, but no assurance towards the rectification of the anomaly has been suggested so far.
The industry has decided not to give up and to proceed more pro-actively to counter the indifference. To begin with afresh, CAPSI has recently resolved to stage a nationwide peaceful protest (Dharna) on 18 July 2018 in front of GST offices of the respective states. The basic ethos of the protest is to simultaneously carry out multiple Dharna’s across the country with adequate media coverage in order to make the authorities aware about the seriousness of the issue.
In this respect CAPSI State Chapter Presidents will sensitise all the security agencies in their states to participate whole heartedly in the protest. Along with CAPSI members, non-members of the industry are also requested to support the cause and participate in order to ensure adequate strength from the Industry. The participants will wear black T-shirts.
CAPSI will also hold a press conference prior to the main event on 16 July at Press Club of India, which will coincide with the scheduled media conference at Delhi by CAPSI.
The Dharna envisages an active involvement of APDI as well. APDI State Chapter Presidents are requested to garner the cooperation and indulgence of all the detective agencies operating in the states to actively participate in the Dharna and make it a huge success.
