GST @18% on Renting of Commercial Space in Immovable Property - AAAR

GST @18% on Renting of Commercial Space in Immovable Property - AAAR

THE AUTHORITY OF ADVANCE RULING

The Question and Ruling as follows : 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 Plam Oil, etc. Whether GST is payable on the storage charges.

RULING

The services provided by the Central Warehousing Corporation to the applicant are covered under renting of commercial space in 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 Notification No.11/2017 - Central Tax (Rate) dated 28.06.2017. The said service is also liable to a tax of 9% under the Karnataka Goods and Services Tax Act, 2017 under entry no.16 of Notification (11/2017) No. FD 48 CSL 2017 dated 28.06.2017.