In Re : M/s. Rishi Shipping
GST
2018 (6) TMI 1195 – AUTHORITY FOR ADVANCE RULING – GUJARAT – 2018 (14) G. S. T. L. 121 (A. A. R. – GST), [2018] 2 GSTL (AAR) 95 (AAR)
AUTHORITY FOR ADVANCE RULING – GUJARAT – AAR
Dated:- 20-3-2018
ADVANCE RULING NO. GUJ/GAAR/RULING/2018/4
GST
R.B. Mankodi, Member and G.C. Jain, Member
Present for the applicant : Shri Haresh Vaishnav
RULING
The applicant M/s. Rishi Shipping has submitted that the company is a Cargo Handling company operating at Kandla Port Trust under stevedoring license issued by Kandla Port and provide Cargo Handling Service which consists of loading / unloading; providing space for storage and its further forwarding as per direction of importer / exporter. The applicant has submitted that they do not have their own warehouse / godown space. They have occupied the same from Government / Private parties. As a part of their services, they provide service of warehouse / space on rent to their customers, where they
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ed on all inter-state supplies as per Section 5 of the Integrated Goods and Services Tax Act, 2017 (herein after referred to as the 'IGST Act, 2017).
2.2 It has been opined by the Commissionerate that the activity carried out by the warehouse owner appears to be in the nature of renting of immovable property and is taxable in GST and activity carried out by the applicant appears to be in the nature of trading of storage space and the same is taxable, as the same is outside of negative list. Moreover, even if it is considered as “sub-letting”, then also it is classified as renting of immovable property (leasing and rental services – heading 9973)
2.3 It is further informed that exporter of agricultural produce in this scenario can avail exemption only if they make direct agreement with warehouse owner for provision of storage and warehousing services and providing documentary evidence that only agricultural produce are being stored in this warehouse and exemption is claime
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We have also considered the opinion, information, documents and views submitted by the Goods & Services Tax and Central Excise Commissionerate, Kutch (Gandhidham).
4. The applicant has requested for advance ruling on applicability of GST for invoices raised to their clients for storage charges for storing their imported agri product in godowns at Gandhidham.
5. On perusal of sample copies of invoices (Invoice No. RS/GR/17-18/027 dated 19.07.2017 and Invoice No. RS/GR/17-18/043 dated 29.07.2017) issued by the applicant, it is observed that the description of service is mentioned as Godown Rent (SAC – 997212) and Goods and Services Tax has been paid @ 18% (CGST 9% + SGST 9% or IGST 18%). The applicant has not submitted anything towards its interpretation of law and / or facts to support that the Goods and Services Tax is not applicable to the aforesaid activity carried out by them.
6.1 It is therefore imperative to examine the nature of service provided by the applicant.
6.2&n
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f service provided for storage or warehousing of goods.
6.4 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.
6.5 In the sample copies of invoices (Invoice No. RS/GR/17-18/027 dated 19.07.2017 and Invoice No. RS/GR/17-18/043 dated 29.07.2017) of the applicant, the description of service is mentioned as Godown Rent (SAC – 997212).
6.6 Therefore, taking all these aspects into consideration, we hold that the applicant is required to pay Goods and Services Ta
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