Difference between ‘storage or warehousing’ service and ‘renting of storage premises’ service explained- (AAR Gujarat)

Rishi Shipping. [2018] 94 taxmann.com 147 (AAR – GUJARAT)

Applicability of GST on storage charges for storing imported agriproduct in godowns.

Rulling  by AAR:

There is a difference between ‘storage or warehousing’ service and ‘renting of storage premises’ service. ‘Storage and Warehousing service’ provider normally make arrangement for space to keep the goods, loading, unloading and stacking of goods in the storage area, keeps inventory of goods, makes security arrangements and provide insurance cover etc. In a case where a person only rents the storage premises, he does not provide any service such as loading/unloading, stacking, security etc. Mere renting of space cannot be said to be in the nature of service provided for storage or warehousing of goods.

Held

Services provided by the applicant are classifiable as ‘Rental or leasing services involving own or leased non-residential property’ (Service Accounting Code – 9972) leviable to Goods and Services Tax @ 18%.