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Press Release

Government to resolve GST issues for private security agencies: Minister of Commerce and Industry Piyush Goyal

Aug 30, 2019


 

NEW DELHI, 30 August 2019: Recognising the significance of the private security industry in terms of job creation and national security, Mr Piyush Goyal, Minister of Commerce and Industry and Minister of Railways, Government of India today said that the government will try resolving the GST issues and ask bankers to help.

 

Speaking at 'Private Security Industry Conclave (PSIC) 2019 - Creating Jobs, Securing New India', organised by FICCI, Mr Goyal said that if the industry comes into the ambit of regulation, the government will look into the GST problem where customers delay the payments, but the GST has to be paid on the due date.

 

"Two things can be done. We can try ensuring timely payments from all government organisations. And, banks can be asked to devise a product dedicated to the private security industry where overdues for a regulated entity from a creditworthy client can be securitised," he said.

 

Mr Goyal urged the industry to recommend licencing framework guidelines to avoid delays in registration of private security agencies. The government is willing to act as a facilitator in setting up an organised framework for the private security industry including matters relating to licensing, registration and training, he said.

 

"Delays in granting licenses is a serious issue. I would urge the industry to come up with a framework for online registration process and minimum documentation, which the Home Ministry can notify to ensure time-bound manner registration is granted," he said, adding the framework will take care of the interest of workers in the industry.

 

Mr Goyal also asked the industry to impart better training to the security guards and possibly design certification in consultation with the Home Ministry for increasing the avenues for promotion and better income for the guards. As for multiple regulators in the states, he said the industry can flag the problems and the government would try dovetailing all the regulations into a uniform framework.

 

The minister further said that the problems in the industry have to be sorted out mutually and he would look into the possibility of engaging private security guards in the government, particularly in the railways, in less critical areas. The sector can be one of the largest employment generators and the current workforce of 70 lakh can grow to two crore, he added.

 

Mr Sandip Somany, President, FICCI said that private security industry is a sunrise sector with a potential to be the second largest employment generator in India. The industry needs to blend manpower with technology for providing better services, he said.

 

Highlighting the focus areas for government action to help realise the true potential of the sector, Mr Somany said that there should be proper enforcement of the Private Security Agencies (Regulation) Act, besides curbing delays in granting licences, streamlining of different regulatory conditions in states along with the PPP approach where industry would engage with law enforcement agencies.

 

Mr Rituraj Sinha, Chair, FICCI Committee on Private Security Industry said, "Amidst the current slowdown, private security industry continues to grow and create jobs. Assurance from senior ministers at the FICCI event today to resolve issues related with GST, Code on Wages, Credit Access for smaller companies and enabling rather than enforcing compliance to labour reforms is very reassuring."

 

Ms Manjari Jaruhar, Advisor, FICCI Committee on Private Security Industry said that the Home Ministry should have a separate cell to look after the agencies and give it a proper direction.

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