2020 (7) TMI 801

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....from the date of service of this order. RULING 1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act) and the rules made thereunder filed by M/s. Roorkee Cold Storage (P) Ltd, Village-Sunehra, Kashipuri, Roorkee, Uttarakhand (here in after referred to as 'the applicant') is registered with the GSTN having Registration No. 05AABCR1223Q1ZE and seeking advance ruling on the following question:- a. Whether the tax is applicable on the hire charges of storage of agriculture produces; b. Whether the tax is applicable on storage on exempted goods under the GST Act; c. Whether the tax is applicable on the same rate or different rates. 2. ....

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....ncerned officer of SGST-Uttarakhand was also present. 5. On perusal of record, we find that the applicant is engaged in rendering services for storage of goods in their cold storage and sought ruling for clarification of tax liability on the charges of services on storage of agriculture produce and exempted goods under GST Act. 6. In the present case we are not deciding any wider question but restricting our conclusion to the facts and circumstances which were filed for our consideration in the application. In this context relevant legal provisions are reproduced for ready reference: A. Notification No. 11/2017-Central Tax (Rate) 28th June, 2017 G.S.R...(E).- In exercise of the powers conferred by sub-section (1) of sectio....

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....carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market; (d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (e) loading, unloading, packing, storage or warehousing of agricultural produce; (f) agricultural extension services; (g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural ....

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....ow from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:- S.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Service Rate (per cent.) Condition 1 2 3 4 5 24 Heading 9967 or Heading 9985 Services by way of loading, unloading, packing, storage or warehousing of rice. Nil Nil 54 Heading 9986 Services relating to cultivation of plants and rearing of a....

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....alter its essential characteristics but makes it marketable for primary market; E. Circular No. 16/16/2017-GST dated 15.11.2017 S.No. Issue Comment 1 Is GST applicable on warehousing of agricultural produce such as tea (i.e. black tea, white tea etc.), processed coffee beans or powder, pulses (de-husked or split), jaggery, processed spices, processed dry fruits, processed cashew nuts etc ? 1 ------------------------ 2 ------------------------ 3 ------------------------ 4 ------------------------ 5. Similarly, processing of sugarcane into jiggery changes its essential characteristics. Thus, jaggery is also not an agricultural produce. 6 --------------- 7. In view of the above, it is hereby clarifi....

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....ce does not require any further processing and if any processing shall be carried by producer or cultivator then said processing does not alter the essential characteristics of such produce; (iii) the requirement of such initial processing is essential to make the produce marketable at the primary stage of marketing. 7.1 We further find that in terms of circular dated 15.11.2017, the storage/warehousing of goods viz pulses, jaggery, etc were taxable but with the introduction of entry 24B in the Exemption Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time), storage/warehousing of pulses, jiggery, fruits, nuts & vegetables are exempted from GST w.e.f 01.10.2019. 8. From the record, we fin....