Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Rcm case for cold storage in gst

RCM 1103 views 1 replies

Nawaz Ali

CA in practice

32 Points Joined December 2011

Companies providing services of cold storage of unprocessed agricultural produce is exempt under GST.

1)But if the company pays rent of warehouse to a unregistered party or take any service from unregistered party, does RCM has to be paid? If YES then ITC will not be utilized since output service is exempt and eventually it will lead to increase in storage cost and burden for farmers.

2) Does supply of exempt services (cold storage) has to be mentioned in GSTR-3B or GSTR-1? (GSTIN already taken)

3) Does heavy electricity charges and fuel expenses paid by cold storage has to be mentioned under NON-GST inward supply?

Need guidance. Thanks in advance.

Replies (1)

ADITYA SINHAL

Tax consultant

41 Points Joined February 2017

Firstly, "ware-housing" is exempt, but not sure about "cold storage", as in word "cold storage" is non-tracable in gst rate finder section of CBEC Portal.

1. Since warehousing is exempt under gst, henceforth, no RCM is to be done.

2. It's to be mentioned positively under table 3.1 (c) in GSTR 3B, and similarly under table 8(A) in GSTR 1.

3. These are expenses and getting consumed to provide storage services, and i think need'nt to be mentioned seperately as Non-GST inward supplies. (Those are only for Petrol pumps, and Electric boards to be mentioned as inward and outward supplies, i guess)