2019 (10) TMI 799

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....RM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Government Company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: The applicant is hiring a Godown of Central Warehousing Corporation, Belgaum and paying storage charges for the agreed space for storage, is it liable to pay GST on Total Storage charges or is it liable to pay GST on taxable storage food commodities like Palm Oil, etc. Whether GST is payable on the storage charges. 3. The applicant furnishes some facts relevant to the stated activity: a. The applicant states that they are into the business of distributing Rice....

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....ruling is sought by the applicant, and relevant facts. 5.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions, Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 5.3 The agreement entered by the applicant With the Central Warehousing Corporation is examined and found the following: a) The applicant has requested the Central Warehousing Corporation for providing storage space at Central Warehouse, Belgaum for storage of PDS commodities belonging to the applicant or its clients as service provider. b) The a....

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....d hand over the godown to CWC after restoring it in the same condition in which it existed at the time of commencement of the agreement. i) the applicant is liable to bear the Taxes including GST. j) The applicant is forbidden to sub-let the premises to any third party. 5.4 All the above terms & conditions of the agreement point out to the fact that the services provided by the Central Warehousing Corporation to the applicant is actually a renting of an immovable property and not storage service of goods. The said service is covered under SAC 997212 & is liable to a CGST of 9% under entry no. 16 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017. The service is also liable to a tax of 9% under the KGST Act....