GST Exemption on cold storage machinery

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..... GST Exemption on cold storage machinery
Query (Issue) Started By: - brijesh patel Dated:- 19-11-2019 Last Reply Date:- 20-11-2019 Goods and Services Tax - GST
Got 4 Replies
GST
Dear Representative, Very Good Afternoon, we are planning to built a cold storage facility for fresh fruits and vegetables. we will use cold storage facility for fruits and vegetables on rental basis and for .....

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..... own produce storage. As providing cold storage facility for fresh fruits and vegetables on rental basis does not attracts any GST under Notification No. 11/2017-Central Tax (Rate) Heading 9986 we can not charge GST on our service. As we are not charging any GST on our service, GST paid by us on our machinery will always remain credited in department. so, which form we will be required for GST exe .....

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..... mption while purchasing machinery? Reply By Rajagopalan Ranganathan: The Reply: Sir, Since the service provided by you is exempted you cannot avail gst paid on capital goods used for providing the exempted service. It will be added to your cost of providing the service. Reply By Ganeshan Kalyani: The Reply: If GST credit is not available, then it can be capitalised in the fixed asset register .....

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..... and depreciation benefit can be claimed. Either GST credit or depreciation benefit can be claimed in GST. Reply By KASTURI SETHI: The Reply: I support the replies of both experts. Reply By SIVARAMA KUMAR: The Reply: Since your business is exempted and you also use it for your own products (assuming non business purposes) you are not eligible to avail ITC, and necessarily to be reversed (if p .....

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..... osted in the EC ledger). The act clearly mentions that only the eligible ITC shall be credited to the EC ledger. and hence it would be a better proportion to include the gst paid to the cost of your asset and claim the benefit of depreciation.
Discussion Forum - Knowledge Sharing .....

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