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TMI BlogWheat Storage Charges - GST applicabilityX X X X Extracts X X X X X X X X Extracts X X X X ..... My clients rent out their godown for storage of wheat. Please advice GST should be charged or not? - Reply By Spudarjunan S - The Reply = Dear Sir, Try out the exemption under sl.no 54 of notification no.12/2017 C.T(R) dated 28th June 2016 . However if you provide any other taxable supplies and your total T.O(including exempted supplies) during the F.Y exceeds ₹ 20 lakhs you are mand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atorily liable for registration under GST and pay GST only on taxable supplies (you can still avail the exemption u/n 12/2017 C.T(R) for warehousing of wheat) - Reply By KASTURI SETHI - The Reply = Dear Querist, Pl. go through this decision of AAR before arriving at any decision. IN RE: M/S. AWLA INFRA [ 2019 (2) TMI 1002 - AUTHORITY FOR ADVANCE RULING, HARYANA ] - Reply By SHA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RAD ANADA - The Reply = There is a very fine difference between renting and warehousing. The difference between renting and warehousing has been explained by CBEC in F. No. B-11/1/2002-TRU, dated 1-8-2002 , wherein it has been clarified that Storage and warehousing service for all kinds of goods are provided by public warehouses, private warehouses, by agencies such as the Central Ware Housin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Corporation, Air Port Authorities, Railways, Inland Container Depots, Container Freight Stations, storage godown and tankers operated by private individuals etc. The storage and warehousing service provider normally make arrangement for space to keep the goods, loading, unloading and stacking of goods in the storage area, keeps inventory of goods, makes security arrangements and provide insuranc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cover etc. It has been stated that in some case a storage owner only rents the storage premises. He does not provide any service such as loading/unloading, stacking, security etc. A point has been raised as to whether service tax would be leviable in such cases. It is clarified that mere renting of space cannot be said to be in the nature of service provided for storage or warehousing of good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Essential test is whether the storage keeper provides for security of goods, stacking, loading/unloading of goods in the storage area. - Reply By KASTURI SETHI - The Reply = IN RE : M/S. RISHI SHIPPING [ 2018 (6) TMI 1195 - AUTHORITY FOR ADVANCE RULING - GUJARAT ] - Reply By KASTURI SETHI - The Reply = Dear Sh.Sharad Anada Ji, You are absolutely right there is a difference betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n both services i.e. Renting and storage and warehousing. IN RE: SHUBHLAXMI COLD STORAGE ICE FACTORY PRIVATE LIMITED [ 2018 (10) TMI 1141 - AUTHORITY FOR ADVANCE RULING, RAJASTHAN ] - Reply By Balakrishnan Ramalingam - The Reply = Thanks for every reply and every one. I still not got it cleared. Let me explain my query or situation further: 1. My clients are flour millers. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . They purchase wheat from traders and store in their godowns. 3. They also undertake job work for grinding of wheat and receive wheat for conversion in huge quantities. Once the stocks are unloaded in our godowns, they get merged with our stock since practically all wheat are same subject to varieties. Then Stock keeping, security arrangements, and fumigations are at done at our cost. The job ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work principals are charged based on the stock in hand of wheat for each month at a particular rate. 4. This is purely an industrial service. 5. Notification S.No 54 of 12/2017 starts like this : Services relating to cultivation of plants and rearing of all life forms of animals , except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral produce by way of - (a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing; (b) supply of farm labour; (c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market; (d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (e) loading, unloading, packing, storage or warehousing of agricultural produce; 6. All services beneth the para 54 denot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es only services to agriculturist like harvest, test, supply of farm labour, pruning cutting etc., renting of agro machineries and storage or warehousing of agri produce ......... 7. So when the whole exemption is towards service to agriculturist, an industrialist doing service to another industrialist, can pierce the notification and directly go clause (e) and claim that storing of agri pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduce is exempt by completely ignoring the very purpose as stated in the opening para of notification S.No. 54 of 12/2017 ? Pl discuss and arrive at conclusion Thanks and regards, R.Balakrishnan FCA - Reply By KASTURI SETHI - The Reply = I am of the view that your client is not entitled to exmption at all. However, in view of conflicting decisions, you may opt for Advance Ruling. - W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heat Storage Charges - GST applicability - Query Started By: - Balakrishnan Ramalingam Dated:- 19-4-2019 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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