TaxTMI 
TaxTMI 
2026 (9) TMI 1735
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....lusively for storage of raw agricultural produce. 2. The applicant has submitted that as per Entry No. 54(e) of Notification No. 12/2017-Central Tax (Rate), services relating to storage and warehousing of agricultural produce are exempt from GST and accordingly, the applicant treated such services as exempt supply and no GST was charged or collected from NAFED/NCCF; that since the principal/output activity itself was exempt, GST under Reverse Charge Mechanism (RCM) was also not discharged on rent paid for hired godowns used exclusively for storage of agricultural produce. The applicant has further submitted that after issuance of Notification No.09/2024, ambiguity arose regarding applicability of GST/RCM on rent paid for hired godowns and therefore, as a matter of abundant caution, they started depositing GST under RCM from December 2024 onwards. The applicant therefore seeks clarification regarding: (i) Applicability of GST on storage and warehousing services for raw agricultural produce. (ii) Applicability of GST under RCM/FCM on rent paid for hired godowns used exclusively for exempt agricultural warehousing activity and (iii) Applicable GST rate, i....
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....e to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 7. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issue involved, the relevant facts & the applicant's submission/views in respect of the questions on which the advance ruling is sought. 8. The applicant has submitted that they are a Government of Gujarat undertaking engaged in providing storage and warehousing services for raw agricultural produce such as groundnut, gram (chana), toor, moong and similar commodities on behalf of agencies like National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers' Federation of India (NCCF) under procurement and farmer welfare schemes for which they use both owned as well as hired godowns, including godowns taken on rent from registered and unregistered persons, exclusively for storage of raw agricultural produce. The questions raised by the applicant seeking Advance Ruling is solely related to the applicable GST (if any) on the rent paid by them to registered/unregistered per....
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.... take place from one such person to another; (b) import of services for a consideration whether or not in the course or furtherance of business; and (c) the activities specified in Schedule I, made or agreed to be made without a consideration; (d) ------- (1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II. (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1), (1A) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- (a) a....
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....tural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers' Federation of India (NCCF) in their own godowns as well as hired godowns for a consideration. Both the above activities fall under the definition of 'services' as defined in Section 2(102) of the CGST Act,2017. Further in case (i) there is a consideration (rent) payable by the applicant to the registered/unregistered persons from whom they are hiring the godowns. In case (ii) the applicant is receiving consideration for the services provided by them. Therefore, in view of the above discussions, it can be safely concluded that the activities mentioned above qualify as 'supply', in terms of Section 7 of the CGST Act, 2017 and the said transaction is liable to GST at applicable rate in respect of such supply, subject to the availability of exemption under the GST law. 9.4 On going through the various Notifications under GST, we find that the storage and warehousing services provided by the applicant for raw agricultural produce such as groundnut, gram (chana), toor, moong and similar commodities on behalf of agencies like National Agricultural Cooperative Marketing Federa....
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....p; Condition (1) (2) (3) (4) (5) 16. Heading 9972 (i) Services by the Central Government, State Government, Union territory or local authority to governmental authority or government entity, by way of lease of land. NIL ---- (ii) Supply of land or undivided share of land by way of lease or sub lease where such supply is a part of composite supply of construction of flats, etc. specified in the entry in column (3), against serial number 3, at item (i), (ia), (ib), (ic), (id), (ie) and (if). Provided that nothing contained in this entry shall apply to an amount charged for such lease and sub-lease in excess of one third of the total amount charged for the said composite supply. Total amount shall have the same meaning for the purpose of this proviso as given in paragraph 2 of this notification. NIL ---- (iii) Real Estate Services other than (i) & (ii) above. 9 ---- 9.6 In order to get further details such as Chapter, Section, Heading, Group, Service Code of the aforementioned services, a reference will be required to be made to the Annexure of Notification No. 11/2017-Central Tax ....
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....2025. After amendment, Entry No.5AB reads as under: SI.No. Category of supply of services Supplier of service Recipient of service (1) (2) (3) (4) 5AB Service by way of renting of any property other than residential dwelling. Any unregistered person. Any registered person other than a person who has opted to pay tax under composition levy. 9.9 It can be seen from the above that Entry No.5AB covers services by way of renting of any property other than residential dwelling. The godowns hired by the applicant are not residential dwellings but are properties other than residential dwellings and would therefore fall under the ambit of this Entry. From a plain reading of the above Entry, it is apparently clear that GST at the rate of 18% (9%CGST + 9% SGST) will be payable by the applicant on reverse charge basis in cases where they are hiring godowns from unregistered persons w.e.f. 10.10.2024. In view of the discussions in paras supra, we find and hold that GST at the rate of 18% (9% CGST + 9% SGST) is payable by the applicant under reverse charge basis on the rent paid for the godowns hired from unregistered persons with effect from 10.10.2024 in ....