GST
TRT-2025-
AAR Tamilnadu
Date:-31-03-23
In:-
Issue Favourable to Tax Payer ?:-
Facts –
- The applicant, SAMCO LOGISTICS LLP, is a lessor who provides a warehouse on rental basis to lessee for the storage of agricultural produce, namely fruits and vegetables.
- The lessee purchases these agricultural produce directly from farmers and traders and stores them in the warehouse without any further processing.
- The applicant claims exemption under entry no. 54(e) of Notification No. 12/2017 CT (Rate) dated 28.06.2017, which provides for a nil rate of GST for services by way of renting the warehouse to store agricultural produce.
Issue –
- Whether the rental income received from renting warehouse to store agriculture produce is covered under the meaning of supply in terms of Section 7 of CGST Act?
Order –
- The AAR has observed that the applicant has rented the immovable property to the lessee and the lessee in turn have used the said property for trading activity in fruits and vegetables.
- The AAR held that the said activity is well covered by section 7 of the act as it fulfills the requirements specified under section 7(1)(a) of the act to constitute the supply.
- The activities of the applicant and Lessee do not fall under any of the exemptions specified under entries 24(e) of Notification No. 11/2017 C.T (Rate) and 54(e) of Notification No.12/2017 C.T (Rate) dated 28.06.2017.
- The AAR has distinguished the ruling passed by the Andhra Pradesh AAR in the case of M/s.SSSVK Cold Storage Pvt Ltd.
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