TaxTMI 
TaxTMI 
My clients rent out their godown for storage of wheat. Please advice GST should be charged or not?
Wheat Storage Charges - GST applicability
19 Apr 2019 
7 Replies 
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GST exemption for storage of agricultural produce may not apply where services amount to industrial job work or mere renting.
GST applicability hinges on whether the activity is mere renting of space or a storage/warehousing service for agricultural produce covered by the exemption notification. Mere rental without services is not exempt; provision of services such as loading, stacking, security, inventory control and fumigation aligns with warehousing and may be exempt when rendered to agriculturists, but industrial job work and merging of consigned stock suggest a taxable industrial service. Registration is required when aggregate turnover exceeds the statutory threshold, and conflicting AARs warrant seeking an advance ruling on mixed facts. (AI Summary)
GST applicability hinges on whether the activity is mere renting of space or a storage/warehousing service for agricultural produce covered by the exemption notification. Mere rental without services is not exempt; provision of services such as loading, stacking, security, inventory control and fumigation aligns with warehousing and may be exempt when rendered to agriculturists, but industrial job work and merging of consigned stock suggest a taxable industrial service. Registration is required when aggregate turnover exceeds the statutory threshold, and conflicting AARs warrant seeking an advance ruling on mixed facts. (AI Summary)