Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Gst charges

Sfipl Scs (1 Points)

04 July 2018

is gst applicable on cold storage charges recieved for storage of jaggery

Reply
Follow
Share

1 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 05 July 2018

YES. APPLICABLE.

Storage or warehousing of agricultural produce is exempt under GST.

Here, “agricultural produce” means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market.

[Notification No. 12/2017- Central Tax (Rate), dt. 28.06.2017]

But, ‘jaggery’ does not come under agricultural produce as the processing of sugarcane into jaggery changes its essential characteristics.

[Circular No. 16/2017-GST, dt. 15.11.2017]

Hence, GST is applicable.