9911796707
TMI Blog2021 (1) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... requirements. 3. The applicant submitted that they are providing fumigation service to their clients as per their requirements in factory premises, in warehouse premises may be stored Agri and non agri products. Further, normally Fumigation Services chargeable to GST @18%. 4. The applicant submitted that their main issue is that Fumigation Services provided to a warehouse of Agricultural Produce is totally exempt under Entry No. 54 of Not. No. 12/2017-CT (Rate) dated 28.06.2017. 5. The applicant submitted that they have order from their client to Fumigation Services in a bonded/ customs warehouse of Food Grain, Pulses and similar to the agri products- whether such fumigation services are chargeable under GST or exempt. 6. The applicant submitted that they sought clarification about the taxability or exempt of such fumigation services provided in a warehouse of Agriculture Produce. Whether such Agri produce stored in a warehouse may be imported or Exported produced. 7. Accordingly, the applicant sought the Advance Ruling on the following questions : 1. Fumigation service provided in a warehouse of agriculture produce is taxable or Exempt vide Entry No. 54 of Not. No. 12/2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per their requirements in factory premises, in warehouse premises may be stored Agri and non agri products. The applicant further submitted that they have order from their client to Fumigation Services in a bonded/ customs warehouse of Food Grain, Pulses and similar to the agri products and such Agri produce stored in a warehouse may be imported or Exported produced. 14. To decide whether the fumigation services provided to the bonded custom warehouse wherein imported or exported agri produce stored are eligible for exemption, we refer the entry No. 54 of Notification No. 12/2017-CT (Rate) dated 28.06.2017. The relevant Entry No. 54 of Notification No. 12/2017-CT (Rate) dated 28.06.2017 as amended vide Notification No. 02/2018-CT (Rate) dated 25.01.2018 is reproduced as under: 4 Heading 9986 Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of- (a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing; (b) supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucer which should only help it to attain marketability at primary market. The said definition limits the scope of processing and allows only those activities which help the produces to attain the condition of its first marketability in primary market. After it attains the condition of first marketability the definition restricts all other further processes on the produce for further sale to be termed as 'Agricultural Produce'. Once the products attains its first marketability for the primary market all other subsequent processes on produce leading to value addition and subsequent sale belong to the realm of secondary market thereon refraining the produce to fall under the category of 'Agricultural Produce' as defined in Notification. 14.2 The term 'primary market' is not defined in the GST Act. It is understood in common parlance as a platform or a place, like a mandi, where the farmers are directly selling to the buyers, including the wholesalers, mills, food processing units, exporters, etc. It appears that services relating to the cultivation of plants include support services as may be required till the farmer disposes the agricultural produce in the primary market. All servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017, therefore, applicant service is liable to GST. 17. The applicant service of fumigation/pest control in Custom Bonded warehouse is liable to GST. Therefore, to determine the classification of the applicant service we refer the explanatory notes of classification Service Code SAC. The relevant entry of said explanatory Notes is as under : 99853 Cleaning services 998531 Disinfecting and exterminating services This service code includes disinfecting dwellings and other buildings; disinfecting vehicles, e.g., buses, trains, boats, planes; exterminating insects, rodents and other pests; fumigation services and pest control services. This service code does not include: - pest (including rabbit) control services in connection with agriculture, cf. 998611 - timber impregnation services, cf. 998831 - cleaning of agricultural premises (hen houses, piggeries, etc.) cf. 998612 17.1 Further, we refer the relevant entry No. 420 of Annexure to the Notification No. 11/2017-CT (Rate) dated 28.06.2017 of SAC 99853 and same is produced as under : 420 Group 99853 Cleaning services 421 998531 Disinfecting and exterminating services 422 998532 Window ..... X X X X Extracts X X X X X X X X Extracts X X X X
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