Is there difference between ‘Storage or warehousing’ services and ‘renting of storage premises’ as per liablity of GST


GST CASE DIGIEST 


Q. Where Applicant, a Cargo Handling company, rent storage premises to its customer, such activity carried out by it would be classified as “Rental or Leasing services involving own or leased non-residential property’ liable to GST


This is article of the series of editorials written by the ADV ACS Jeetam Kumar Saini on Corporate Laws(He also Written many articles Including Companies Act, 2013, SEBI, RBI Regulations, IBC)advocatejeetamsaini@gmail.com - 9785949998


Case

Rishi Shipping, In re[2018] 147 (AAR- Guj) 


Held that there is difference between ‘Storage or warehousing’ services and ‘renting of storage premises’. ‘Storage or warehousing’ normally makes arrangement for space to keep the goods, loading, unloading, make security arrangement and provide insurance cover etc. In case where person only rents the storage premises, he does not provide other services .Mere renting space cannot be said to be in nature of service provide for storage or warehousing of goods and as per nature of service provided by the applicant , as described in the application, it is clear that applicant only rent the storage premises .Therefore , the applicant is required to pay Goods and Service Tax at 18%(CGST 9% + GGST 9% or IGST 18%) Service Accounting Code -997212)



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