2026-VIL-169-AAR
  1. Home
  2. 2026-VIL-169-AAR

SGST Advance Ruling Authority

GST – Gujarat AAR - Applicability of GST on rent paid for hired godowns used exclusively for storage and warehousing of raw agricultural produce - Liability under Reverse Charge Mechanism - Applicant used both owned and hired godowns exclusively for storage and warehousing services for raw agricultural produce on behalf of agencies such as NAFED and NCCF - Whether GST is applicable on rent paid for hired godowns used exclusively for storage and warehousing of raw agricultural produce – Taxability under Reverse Charge Mechanism or Forward Charge Mechanism - HELD - Hiring of godowns from registered/unregistered persons on payment of rent, and provision of storage and warehousing services for raw agricultural produce in own and hired godowns for consideration, both fall under the definition of "services" under Section 2(102) of the CGST Act, 2017 and, being made for consideration in the course or furtherance of business, qualify as "supply" under Section 7 of the Act - The storage and warehousing service provided for raw agricultural produce is exempt under Entry No. 54(e) of Notification No. 12/2017-Central Tax (Rate). However, the activity of hiring godowns from registered/unregistered persons on payment of rent is a separate service, covered under Entry No. 16 of Notification No. 11/2017-Central Tax (Rate) having SAC 997212 and liable to 18% GST - These two services cannot be read in tandem merely because the hired godowns are used exclusively for the exempt warehousing activity and must be examined independently with reference to the notifications applicable to each – Further, following insertion of Entry No. 5AB in Notification No. 13/2017-Central Tax (Rate) by Notification No. 09/2024-Central Tax (Rate) with effect from 10.10.2024, covering renting of any property other than residential dwelling by an unregistered person to a registered person - GST at 18% is payable by the applicant on RCM basis on rent paid for godowns hired from unregistered persons with effect from 10.10.2024 – Ordered accordingly
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?