GST EXEMPTION FOR WAREHOUSING OF AGRICULTURAL GOODS – RAJASTHAN AAR RULING

GST EXEMPTION FOR WAREHOUSING OF AGRICULTURAL GOODS – RAJASTHAN AAR RULING

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Before the Bench of:

1. Nitin Wapa, Member (Central Tax)

2. Sudhir Sharma, Member (State Tax)

Case Title :- Sardar Mal Cold Storage & Ice Factory

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AÄR/2018-19/03

Date of Judgement/Order- 11th June 2018

IMPORTANT PARAGRAPHS

Para No. 1. M/S Sardar Mal Cold Storage & Ice Factory(hereinafter referred to as ‘Applicant’) submitted an application, seeking an Advance Ruling on the Entry No. 24 of the Notification No. 11/2017 Central tax (Rate) dated 28/06/2017 which at S. No. 24 (i)(i)(e) provides tax rate as ‘NIL’ for serwices of loading, unloading, packing, storage or warehousing of agricultural produce as a support services to agriculture, forestry, fishing, animal husbandry.

the applicant seeks advance ruling over the coverage of definition of support services of loading, unloading. packaging. storage or warehousing of agriculture produce as explained at Explanation (i) (e) given at S.No 24 of the said notification.

Para No. 5. Applicant’s Questions(s) on which Advance Ruling is required

In order to seek advance ruling that, whether all the goods as listed in their application are covered under the definition of agriculture produce as defined under explanation 4 (vii) of the Notification No. 1 1/2017 Central tax (Rate) dated 28/06/2017 and Notification No 12/2017 Central Tax (Rate) dated 28/6/17 (at point 2(d) of the notification) hence attracts NIL rate of duty as per S. No. 24 of the notification no 11/2017 or S. No 54 of the notification no 12/2017.

RULING

Taxability of the supply of Cold Storage services in respect of goods as mentioned under Group A to Group G in the application for Advance Ruling filed by M/S Sardar IMal Cold Storage & Ice Factory , H-141,142,150, Malviya Industrial Area, Malviya Nagar, Jaipur is as follows :-

1. Goods mentioned under Group A fall under the definition of Agricultural Produce in terms of the aforesaid notification and so supply of cold storage service in relation to these is exempt from the levy of GST . However if any processing is done on these products as is not usually done by a cultivator or producer at farm level then these would fall outside the definition of agricultural produce as given in the aforesaid Notification and in that case supply of cold storage service in relation to these would remain chargeable to GST.
2. Goods mentioned under Group B to G are not Agricultural produce in terms of the aforesaid notification and so the supply of cold storage service in relation to these would remain chargeable to GST.