Regarding GST Applicability on Cold Storage of Agriculture produce

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Suresh S. Tejwani (Querist)
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29 December 2022 Is GST Applicability on Cold Storage of Agriculture produce and Support services to agriculture, forestry, fishing, animal husbandry

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 July 2024 GST (Goods and Services Tax) applicability on services provided by cold storage facilities and support services to agriculture, forestry, fishing, and animal husbandry depends on specific criteria and exemptions provided under the GST law. Here’s a general overview:

### Cold Storage of Agricultural Produce:

Cold storage services provided specifically for agricultural produce are generally exempt from GST under certain conditions. According to GST law:

- **Exemption:** Services by way of storage or warehousing of agricultural produce are exempt from GST if:
- The services are provided by a person operating a cold storage or warehouse in relation to agricultural produce.
- The agricultural produce is not subjected to any processing other than the processes necessary for the storage.

- **Conditions:** The exemption applies as long as the cold storage or warehouse primarily holds agricultural produce. If the cold storage facility also stores non-agricultural goods, GST may apply proportionally to the non-agricultural portion.

### Support Services to Agriculture, Forestry, Fishing, Animal Husbandry:

Support services related to agriculture, forestry, fishing, and animal husbandry can be broadly categorized into several types, and their GST applicability varies:

1. **Exempt Services:** Certain support services directly related to agriculture, etc., may be exempt from GST. For example:
- Services by way of agriculture, horticulture, forestry, fishing or animal husbandry are generally exempt.
- Agricultural operations directly related to production of crops or rearing of all forms of life are exempt.

2. **Taxable Services:** Some services provided to agriculture and related activities may attract GST. For instance:
- Services such as renting or leasing of agricultural machinery and equipment without an operator are taxable under GST.
- Services provided by agricultural input providers such as seed suppliers, fertilizer suppliers, etc., are taxable unless specifically exempted.

### Conclusion:

In summary, while cold storage of agricultural produce is generally exempt from GST under specified conditions, support services to agriculture, forestry, fishing, and animal husbandry can vary in their GST applicability based on specific activities and exemptions provided by GST laws. It is advisable to consult with a GST professional or tax advisor to determine the exact GST implications for specific services related to agriculture and related activities. They can provide tailored advice based on current GST regulations and any recent updates from the authorities.