Dear Sir / Madam,
Manufacturing company has doing Rack Installation for storage of Agriculture Produce is exempted or Taxable?
In general they charge 18% to their customers, but though this process have been doing for Agriculture Produced by Govt company they are denying to pay the GST on the above.
Please clarify, Is it Taxable or Exempted? if it is exempt from Tax, what documents to be collected from them to Justify this is exempted sales.
GST on Rack Installation for Agricultural Storage: Exempt if Pure Service to Govt. Entity, Taxable if Goods Supply. A manufacturing company inquired about the Goods and Services Tax (GST) applicability on rack installation services for storing agricultural produce, questioning whether it is taxable or exempt. The company usually charges 18% GST but faced resistance from a government company. Responses clarified that pure services provided to a government entity related to activities under Articles 243G or 243W of the Constitution may be exempt. However, if the transaction primarily involves supplying racks with installation as an incidental service, it is considered a supply of goods, and the exemption may not apply. (AI Summary)
TaxTMI 
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TaxTMI 
