In re Stellar Cold Chain Inc. (GST AAR Uttarakhand)
M/s Stellar Cold Chain Inc. sought an advance ruling under Section 97 of the Central Goods and Services Tax (CGST) Act, 2017, and Uttarakhand State Goods and Services Tax (SGST) Act, 2017. The applicant, engaged in the cold storage business in Uttarakhand, processes raw green peas into frozen peas and provides storage and refrigeration services to other companies. They charged 5% GST on processing services and 18% GST on storage services but questioned whether storage services for frozen green peas should be subject to NIL GST under Notification No. 04/2022-Central Tax (Rate) dated 13.07.2022.
Key Issues for Advance Ruling
The advance ruling sought by M/s Stellar Cold Chain Inc. raised several critical issues related to the taxability of their services under the GST Act and the applicability of specific GST notifications. Here are the key issues identified:
- Taxability of Storage Charges under GST Act: The primary issue brought forth by the applicant was the taxability of storage charges imposed for frozen green peas kept in cold storage facilities. The applicant sought clarity on whether these storage charges are subject to Goods and Services Tax (GST) under the provisions of the GST Act, 2017. This query aimed to determine the appropriate GST treatment applicable to the services rendered by M/s Stellar Cold Chain Inc., specifically concerning the storage of processed and frozen green peas.
- Applicability of NIL GST Tariff on Storage Charges: A crucial aspect of the applicant’s query pertained to the applicability of the NIL GST Tariff as specified under Notification No. 04/2022-Central Tax (Rate). The applicant argued that their storage services for frozen green peas should be exempt from GST based on this notification. Notification No. 04/2022-Central Tax (Rate) categorizes services related to storage or warehousing of cereals, pulses, fruits, and vegetables under a NIL GST rate. The applicant contended that since green peas are classified as vegetables, their storage services should fall within the purview of this exemption. This issue necessitated an examination of whether the services provided by the applicant qualified for the NIL GST rate under the specific terms outlined in the notification.
- Relevance of Notification No. 04/2022-Central Tax (Rate) for the Applicant: Additionally, the applicant sought clarification on the applicability of Notification No. 04/2022-Central Tax (Rate) to their particular case. They requested the Advance Ruling Authority to ascertain whether the provisions of this notification, which exempt certain categories of storage services from GST, specifically applied to the services offered by M/s Stellar Cold Chain Inc. This inquiry aimed to determine the scope and extent to which the provisions of the notification could be interpreted to exempt the storage charges levied by the applicant for storing frozen green peas.
Applicant’s Submissions
