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2020 (8) TMI 528 - APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKANature of supply of services - Difference between the Storage or warehousing services and providing warehouse on rent - Is GST liable to be paid on the entire amount paid as consideration for storage charges or is GST liable to be paid only on the storage of taxable food commodities like palm oil, etc? - exemption from GST in terms of entry SI. Nos 54 or 24 of Rate Notification No 12/2017 CT (R) dated 28-06-2017 - challenge to AAR decision. HELD THAT:- CWC is only providing the 488 sqmetres of space in the central warehouse for rent. The space has been taken on rent by the Appellant for storing the food grains. The activity which is under consideration here is the activity performed by CWC and not the activity undertaken by the Appellant. The supply made by CWC is merely a renting of space. There is difference between `storage or warehousing’ service and ‘renting of storage premises’ service. The ‘storage and warehousing service’ provider normally makes arrangement for space to keep the goods, loading, unloading and stacking of goods in the storage area, keeps inventory of goods, makes security arrangements and provides insurance cover etc. In a case where a person only rents the storage premises, he does not provide any service such as loading / unloading, stacking, security etc. Mere renting of space cannot be said to be in the nature of service provided for storage or warehousing of goods. The Appellant has referred to a clarification given by the Commissioner Service Tax to the effect that the storage of food grains would not attract service tax - Since we are considering the nature of the service supplied by CWC, the clarification given by the Commissioner Service Tax to the Appellant has no relevance. The service supplied by CWC to the Appellant is renting of immovable property. The amount of rent paid by the Appellant to CWC is taxable at the hands of CWC under the category ‘Rental or leasing services involving own or leased non-residential property’ (Service Accounting Code - 997212) - decision of AAR upheld.
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