Liability of GST — the applicant raised the following queries:

i) What are tax implications in GST regime using leased premises for cold storage purpose of agriculture produce on leasing charges?

ii) What are tax implications in GST regime on cold storage leased on rent for storage with or without preservation and maintenance to Private Enterprises?

iii) What are tax implications in GST regime on seeds/agricultural produce for storage or warehousing on behalf of farmers and traders?

Held that— As can be seen, Sl. No. 54(e) of the notification 12/2017-CT (R) dated 28.06.2017 provides for exemption from GST in respect of supply of services rendered for storage in relation to the agricultural produce. It is noticed that the term ‘agricultural produce’ has been defined under clause 2(d) of the Notification ibid. Thus, the supply of service for storage or warehouse of goods is exempted if the same is provided in connection with storage or warehousing of ‘agriculture produce’ as defined in clause 2(d) of Not. No. 12/2017-CT (R) dated 28.06.2017 as amended. We further find that the notification is with regard to service supplied and not person specific. As such, the entry No. 54(e) is equally applicable for storage services in respect of agricultural produce of both the farmers and the traders.
Coming to the issue of tax liability on leasing services availed by the applicant with regard to the cold storage facility, we opine that if the agreement is purely for renting/leasing of the premises of cold storage by one entity to another entity, then the said activity amounts to renting/leasing of immovable property and does not fall within the ambit of storage services. In terms of clause (a) of para 5 of the Schedule II (appended to the GST Act), read with Section 7 of the GST Act, renting of immovable property is to be treated as supply of service. Thus, providing non-residential property on rental basis is a supply of service which is classifiable under SAC No.997212. The said supply of service is chargeable to tax @18% under residuary entry—Gubba Cold Storage Private Limited, In Re… [2020] 23 TAXLOK.COM 018 (AAR-Telangana)