GST on Renting godown to KFCSC for Storage of Raagi


This query is : Resolved 

(Querist)
07 October 2026 We have a proprietorship firm and rented to KFSCSC for Storage of Raagi. We make Rental Invoice with GST 18%. Now KFCSC wants to claim exemption under GST. Whether it is applicable or not?

10 October 2026 The exemption under Notification No. 12/2017-CT(R) applies only to direct storage and warehousing services of agricultural produce, not to the renting of commercial immoveable property/godowns. Even though KFCSC stores Raagi (agricultural produce) in the godown, the service provided by the proprietorship firm is "Renting of Immovable Property," which attracts 18% GST. Therefore, KFCSC cannot claim exemption, and charging 18% GST on the rental invoice is legally required.


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