2021 (10) TMI 520

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....ith Rule 104 of CGST/TGST Rules. 2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression 'GST Act' would be a common reference to both CGST Act and TGST Act. 3. It is observed that the Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The applicant has declared that the questions raised in the application have neither been decided....

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....mitted and contended as follows: 1. That the applicant is provider of godowns/warehouses on lease mainly to CCI. The CCI is storing processed cotton bales in the said godowns. 2. The applicant is desirous of ascertaining whether the processed cotton bales or agricultural produce as per Notification No.11/2017 and 12/2017 at Serial No. 24 and 54 respectively and if so whether the rentals received on leasing of such godowns qualify for exemption under GST Act. 7. Discussion & Findings: The applicant has argued that they are supplying the service of storing bailed and pressed cotton in their warehouses to M/s. Cotton Corporation of India. As seen from Entry 24B of notification 21/2019 dt:30.09.2019 the following items falling under servi....

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....oduce marketable for the primary market by the farmer are included in these processes. However, the processing of raw cotton by way of ginning and then pressing and then into bails is not covered by this exemption notification. For this reason cotton ginning and pressing activity is treated as supply of service and it is revealed that Cotton Corporation of India (CCI) is paying GST on ginning charges for the services supplied by cotton ginning mills in the State of Telangana. The CCI has purchased raw cotton from farmers in the primary market and then processed it in ginning mills on job work basis. CCI has paid tax on ginning and pressing to the ginning mills as it cannot claim exemption under Entry 24 of the modified Notification No. 11....