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Storage or Warehousing, Goods and Services Tax - GST

Issue Id: - 115730
Dated: 30-11-2019
By:- SARAVANAN PURUSHOTHAMAN
Storage or Warehousing

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Sir

For us one party is providing warehousing service in relating to Jaggery (storage space provided by us) and he raised the tax invoice. CBIC vide notification number 21/2019 exempting storage or warehousing of jaggery exempt from GST. We have informed that GST will not applicable on warehousing service but they are not accepting that. They are saying that exemption is applicable only when they provide storage space and warehousing service (as per their opinion received from advocates).

Whether that stand taken by service provider is right?

In that notification they mentioned Storage or Warehousing but not as storage and warehousing.

Regards

Saravanan.

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Showing Replies 1 to 3 of 3 Records

1 Dated: 30-11-2019
By:- KASTURI SETHI

Stand taken by your service provider is not correct.This is not the intention of Govt. to deny exemption from GST on the ground of word, "OR" used. By using the word, "OR" in the Notification No.21/2019-CT (Rate) dated 30.9.19 you have got more 'freedom'. Had the word,"AND' been used in the said notification, then the plea taken by your service provider would have been correct. In that situation you would have been bound by the word, "AND". The "OR" does not snatch freedom (exemption) from you.Per contra, "OR" helps you rather than chaining your service. Notification says 9967 (Storage and warehousing services) or 9985 (Support Services). Any kind of support service in maintaining warehouse is also exempted for storage of jaggery. Warehousing is a wider term and it includes storage also.For availing exemption you have choices.

99672 Storage and warehousing services

996729 Other storage and warehousing services

This service code includes storage services of grains, other storage or warehousing services.

In Service Tax era, this service was also specified as "Storage AND warehousing Service" under Section 65(105) (zza) of the Finance Act (Accounting Code -00440193). Identified under one accounting code.“

(102) “storage and warehousing” includes storage and warehousing services for goods including liquids and gases but does not include any service provided for storage of agricultural produce or any service provided by a cold storage;”

I mean to say agriculture produce was exempted for storage and warehouse in pre-GST era and GST regime.


2 Dated: 1-12-2019
By:- SARAVANAN PURUSHOTHAMAN

Thank you sir for your clarification.

Regards

Saravanan.


3 Dated: 4-12-2019
By:- SHARAD ANADA

There is difference between ‘storage or warehousing’ service and ‘renting of storage premises’ service. The ‘storage and warehousing service’ provider normally make 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 provide 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.

Rental or leasing services involving own or leased non-residential property’ (Service Accounting Code – 9972) leviable to Goods and Services Tax @ 18%.


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