A port trust provide renting facility to various transporter who transports goods via ship. For having security at sea port it hired CRPF, for security service it pay GST under RCM. In charges for renting security cost was included and Port charges tax under forward charges as per law.
Now port decided to charge a lumpsum amount per head from each person who enter port on the basis of payment made to CRPF. Whether these changes will be regarded as for support services or security services. Main aim for appointing CRPF is security of all at port.
If such charge is regarding as for security services whether leviable under RCM or forward charge because port trust is person other than body corporate. Also customers of both type come registered as well as unregistered.
If such amount is Leviable under RCM for Registered customers whether i need to reverse proportionate ITC of GST paid under RCM for CRPF security services. If yes i will include it in my cost and make charges on that basis. Whether GST will be leviable on increased cost due to unavailability of ITC. It may also cause GST on GST.
In our view , change in mode of charging consideration should not change the substance of transaction and port charges should continue to be taxable under FCM. Whether port has stopped charging GST under FCM??
Team Clearmytax.in
Now port is raising invoice under forward charge for renting from transporter.
And port is raising separate invoice for security services under forward charge to each person entering port whether he/she is transporter or not.
Thus for person who are even not transporter invoice is raised and they are only taking security services. So, government may raise a point of reverse charge. So I want to know whether such entrant need pay under RCM or treatment by port is correct.