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The services of the applicant to supervise the handling & transportation of “agriculture produce” belonging to the FCI, from railhead to the warehousing station provided by the H&T contractors, are covered under SAC 9997 being the services nowhere else classified and are exigible to GST @ 18%

Classification of service— In the instant case, applicant submitted that they provide “Storage and Warehousing” services to the depositors such as FCI, for storing the agricultural produce. The applicant, at the request of FCI, undertakes the handling & transportation of the goods to be warehoused or to be removed, through the H&T contractors, and claims the actual charges plus 8% of the said charges (supervision charges) for having supervised the said H&T work. The instant application is with regard to taxability of the said “Supervisory Charges”. The applicant contends that supervisory charges would fall under the heading 998619 “Other support services to agriculture, hunting, forestry and fishing” or under the SAC 996799 “Other supporting transport services n.e.c” or under the SAC 999799 “Other services n.e.c” and accordingly would be liable to tax at the rate of 9% CGST & 9% KGST or at 18% IGST respectively. Held that— The services of the applicant to supervise the handling & transportation of “agriculture produce” belonging to the FCI, from railhead to the warehousing station provided by the H&T contractors, are covered under SAC 9997 being the services nowhere else classified and are exigible to GST @ 18% in terms of Sl.No.35 of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, on the value equivalent to 8% of the sum of actual amounts paid to H&T contractors, in terms of Section 15 of the CGST Act, 2017.
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