Dear Sir
We are in the business of cold storage warehouse and we store food items (Agricultural & Non-Agricultural). During 2016-17 & 2017-18 storage of agricultural food items included
Fruits and Vegetables Pulses (Rajma, Green peas, Chawali, etc) Wet Dates and Dried Dates Groundnuts (Singdana) Inshell Walnut
Whereas from the above items Service tax officer accepted only fruits and vegetables as agricultural and rest all treated as non-exempted/ non-agricultural, and have raised a demand for the same. Are They Correct
Please Guide
Cold Storage Business Challenges Tax Classification of Stored Goods; Debates on Definition of Agricultural Produce Under GST A business involved in cold storage is questioning a service tax officer's classification of stored items during 2016-17 and 2017-18. The officer deemed only fruits and vegetables as exempt agricultural produce, while other items like pulses and groundnuts were classified as non-exempt. Respondents in the forum suggest that the definition of agricultural produce under service tax aligns with GST, emphasizing that items not significantly processed may qualify as agricultural produce. The discussion highlights the importance of proving that stored items have not undergone processing beyond what is typically done by cultivators to maintain their agricultural status. (AI Summary)
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