A GRAIN VENDOR WHO KEEPS CHANA(EXEMPTED IN GST) AND SUGAR(TAXABLE IN GST) IN WAREHOUSE OF FOOD CORPORATION OF INDIA,THE FCI ISSUED THE RENT BILL TO VENDOR OF CHANA WITHOUT GST AND OF SUGAR WITH GST,IS THERE ANY DEFINITON IN REGARD OF THIS THAT GST ON RENT ONLY APPLICABLE ON GRAINS TAXABLE AND NOT ON EXEMPTED????

Reply—As per sr. no. 24B of notification No.12/2017-Central Tax (Rate) dated 28.06.2017, Services by way of storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea is exempt from GST w.e.f. 01.10.2019. Refer Notification No.21/2019–Central Tax (Rate) Dated: 30th September, 2019.

Warehousing of rice is also exempt under sr. no. 24 of notification No.12/2017-Central Tax (Rate) dated 28.06.2017.

As sugar is not covered under exemption, warehousing of sugar will attract GST @18% as support service under SAC 9985.