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TMI Blog2023 (4) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... dule premises or any part thereof. The applicant has rented the immovable property to the Lessee and the Lessee in turn have used the said property for trading activity in fruits and vegetables - leasing of immovable property by the applicant is an input service for the trading activity of the Lessee. The activities of the applicant and Lessee is not covered under any of the activities specified under entries 24 (e) of Notification No. 11/2017 C.T (Rate) and 54 (e) of Notification No. 12/2017 C.T (Rate) dated 28.06.2017 - In the present application, the applicant has rented the warehouse to the Lessee for storing agricultural produce for trading activity, whereas in the ruling relied by the applicant, the applicant is rendering service of storing and warehousing of agricultural produce covered under entry No.54 (e) of Notification No. 12/2017 C.T (Rate) dated 28.06.2017. - SHRI R. GOPALSAMY, I.R.S., AND TMT N. USHA, MEMBER PROCEEDINGS OF THE AUTHORITY FOR ADVANCE RULING U/s.98 OF THE GOODS AND SERVICES TAX ACT, 2017. 1. Any appeal against this Advance Ruling order shall lie before the Tamil Nadu State Appellate Authority for Advance Rulings, Chennai as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,5 The applicant relies on Entry No 54(e) under the Notification No. 12/2077 C.T (Rate) dated 28.06.2017, to claim exemption for the Services by way of Renting the Warehouse to store Fruits Vegetables that attract NIL rate of GST. 2.6 The applicant refers to advance ruling passed by AAR Andhra Pradesh in the case of M/s SSSVK Cold Storage Private Limited holding that Services by way of Renting Warehouse for Storage of Agriculture produce falls under Service Account Code (SAC) 998619 and attracts NIL rate of GST vide AAR/AP/02(GST)/2018. 3.1 The applicant, after consent, was given an opportunity to be virtually heard on 17.08.2022. The Authorized Representative (AR) Sri D. Anudeep Kumar, of the applicant appeared before the authority and reiterated the submissions. When asked about the nature of service provided by the applicant to the Lessee of the Warehouse, AR stated that renting of immovable property service is provided by the applicant / Lessor. The Lessee is rendering Supply chain service from the leased Warehouse to their customers. The AR was asked to furnish copy of Rental /Lease Agreement between applicant / Lessor and Lessee, copy of invoice issued by applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricultural produce is Nil rate subject to the condition that the support service is extended to the agricultural produce only. Based on the above notification, the Lessor shall approach GST Advance Ruling Authority and in case the Authority gives adverse ruling on the subject, the Lessee shall pay / reimburse the GST at applicable rates to the Lessor. 4.1 The applicant is under the administrative control of Central Tax. The said jurisdictional authority was addressed to report if there are any pending proceedings against the applicant on the issues raised by the applicant in the ARA application and for comments on the issues raised. The said authority vide letter dated 19.09.2022 stated that there are no pending proceedings on the issue raised by the applicant in the ARA application. It is further stated that SI. No. 24(e) of Notification No. 11/2017 C.T (Rate) dated 28.06.2017 provides for exemption from GST in respect of supply of services rendered for storage in relation to agricultural produce and the term 'agricultural produce' has been defined under clause 2 (d) of Notification No. 12/2017 C.T (Rate) dated 28.06.2017 as amended. The notification is with regard to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 7 the Act, if so, whether it is classifiable as loading, unloading, packing, storage or warehousing of agricultural produce with Nil rate of GST vide Sl. No. 54 (e) of Notification No. 11/2017 C.T. (Rate) dated 28.06.2017, if not, its GST rate and SAC. 7.1 It is seen from the submissions and documents enumerated in para 3.2 supra that the applicant has supplied Rental or Leasing Services involving own or Leased non-residential property to the Lessee viz M/w 63 ideas Infolabs Private Limited. The applicant chose not to mention the SAC in the Invoice issued to Lessee and not to collect GST from the Lessee pending ruling by advance ruling authority on the eligibility for exemption as the collection of GST from the Lessee is secured by Indemnity Bond. 7.2 The copy of Indemnity Bond submitted by the applicant, discussed in para 3.4 supra, relies on entry No. 54(e) of Notification No. 12/2017 C.T (Rate) to seek advance ruling to determine GST liability on the property leased by the applicant to the Lessee. However, the applicant has sought advance ruling on classification of services of renting of warehouse to store agricultural produce under entry No. 54(e) of Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (e) loading, unloading, packing, storage or warehousing of agricultural produce; 8.2 Perusal of entry No.16 (iii) of Notification No. 11/2017 C.T (Rate) dated 28.06.2017 read with Heading No. 9972 of Classification Scheme for Services under GST reveals that 'Rental or leasing services involving own or leased non-residential property' is classifiable under SAC 997212 and it attracts GST @ 18%. 8.3 It is pertinent to note that the Invoice issued by the applicant to the Lessee also bears the service description of 'Rental or leasing services involving own or leased non-residential property' without the mention of its SAC. 8.4 Perusal of the recitals of Lease Agreement dated 14.03.2022 between the applicant and the Lessee reveals that Land and building specified in the Schedule 'A' Property has been allowed to be used for buying and selling of fresh fruits, vegetables and related purpose and for any lawful businesses without any restriction and the Lessee is further entitled to assign under lease or sub-lease or grant leave or license of the schedule premises or any part thereof. 8.5 Further, perusal of 'Tax invoices' issued by ..... 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