Case Law Details
In re Rishi Shipping (GST AAR Gujarat)
there is difference between ‘storage or warehousing’ service and ‘renting of storage premises’ service. The ‘storage and warehousing service’ provider normally make arrangement for space to keep the goods, loading, unloading and stacking of goods in the storage area, keeps inventory of goods, makes security arrangements and provide insurance cover etc. In a case where a person only rents the storage premises, he does not provide any service such as loading / unloading, stacking, security etc. Mere renting of space cannot be said to be in the nature of service provided for storage or warehousing of goods.
The applicant has submitted in the application that as a part of their services, it provides service of warehouse / space on rent to their customers, where they (customers of applicant) store imported agricultural commodities. From the nature of service provided by the applicant, as described in the application, it is clear that the applicant only rent the storage premises. Once the storage premises is rented by the applicant to its customers, what use the customer makes of such premises doesn’t have any bearing on the nature of service provided by the applicant.
Therefore, taking all these aspects into consideration, we hold that the applicant is required to pay Goods and Services Tax at 18% (CGST 9% + GGST 9% or IGST 18%) for aforesaid activity carried out by them classifiable as ‘Rental or leasing services involving own or leased non-residential property’ (Service Accounting Code – 997212).
FULL TEXT OF ADVANCE RULING
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