Rent received by warehouse for storing Agricultural Produce Exempt from GST:

Rent received by warehouse for storing Agricultural Produce Exempt from GST The Authority of Advance Ruling (AAR Tamilnadu) in the matter of Shri R.Gopalsamy has ruled out that Rent recived by warehouse for storing Agricultural Produce Exempt from GST. The Question and Ruling are as follows: 1. Whether the Rental Income to be received by the Applicant from Renting Warehouse to store Agricultural Produce is a consideration for supply and the activity is covered under the meaning of supply of services in Lerms of Section 7 of the Central Goods and Services Tax Act, 2017? 2. If the above activity is considered as supply of service, then whether the same 1S classifiable as "loading, unloading packing, storage or warehousing of agricultural produce, with 'NlL' GST Rate under SL No. 54(e) of SAC 9985 of the Notification- 11/2017- C.T. (Rate) dated 28th June 2017? 3. GST Rate and SAC Code applicable (if answer to point no.2 above is "No")

RULING

1. Rental Income received by the applicant from Renting Warehouse to store Agricultural Produce is a consideration for supply and the activity is covered under the meaning of supply of services in terms of Section 7 of the Central Goods and Services Tax Act, 2017. 2. Renting Warehouse to store Agricultural Produce is considered as supply of service, and the same is not classifiable as "loading, unloading packing, storage or warehousing of agricultural produce, with 'Nil' GST Rate under SL No. 54(e) of SAC 9985 of the Notification-11/2017 - C. T. (Rate) dated 28th June 201 7. 3. Renting Warehouse to store Agricultural Produce covered under the entry 'Rental or leasing services involving own or leased non-residential property' classifiable under SAC 997212 and it attracts GST @ 18% vide entry SL No.16 (iii) of Notification No.11/2017 C.T (Rate) dated 28.06.2017. For Official Ruling Download PDF Given Below: