GST applicable on rent received for storage of wheat

[KARAN VERMA]

Sir, whether GST applicable on rent received for storage of wheat and storage of husk for boiler.

[Rajagopalan Ranganathan]

Sir,

Vide Sl. No. 54 (e) of Notification No. 12/2017 C.T. (Rate) dated 28.06.2017 as amended Services relating to loading, unloading, packing, storage or warehousing of agricultural produce is chargeable to tax @ 'Nil' rate. Hence GST applicable on rent received for storage of wheat and storage of husk for boiler will be 'Nil'

[Ganeshan Kalyani]

Maize is an agricultural produce and its storage is exempt from GST as opined by Sri Rajagopalan Sir.

Husk is a result or comes into existence after the grain is processed. So it losses its identity as an agricultural produce. Its storge is taxable under GST.

AI Summary

GST on storage services: storage of agricultural produce may be nil rated, but storage of processed by products can be taxable.
Storage rent for raw agricultural produce such as wheat is nil rated under the notification for storage/warehousing of agricultural produce; by contrast, storage of processed by products like husk, which arise after processing and lose the character of agricultural produce, is taxable and does not qualify for the agricultural storage exemption.