The applicant, Karnataka State Warehousing Corporation submitted that they are a State Government Undertaking, establishment during 1957 and set up under the erstwhile Agricultural Produce (Development and Warehousing Corporations Act, 1956, later repealed by the Warehousing Corporation Act, 1962, having Central Warehousing Corporation and the Government of Karnataka as shareholders, in equal proportions. Further they also submitted that they are engaged in the various activities.
Firstly, to acquire and/or build godowns and/or warehouses within the State of Karnataka.
Secondly, to run Warehouses in the State of Karnataka for the storage of Agricultural Produce, seeds, manures, Fertilizers, Agriculture implements and other notified commodities.
Thirdly, to arrange facilities for handling and transport, loading and unloading of agricultural produce, seeds, manures, fertilizers etc., to and from various railheads to corporation’s godowns; and supervise all these activities being carried out by handling & Transport contractors (H&T Contractors).
Fourthly, to arrange for disinfestation services on behalf of farmers, government offices, public libraries, etc.
Lastly, to lease/rent out space on per square feet or any other basis to other corporations/agencies for storage of food grains, oil, fertilizers. Branded good, etc.
The applicant has sought advance ruling on the issue whether ‘supervisory charges under clause 28(b) of the Office order on charges of KSWC charged to Food Corporation of India (FCI) by the Corporation towards supervision of loading, transportation and unloading of agricultural produce like Rice, wheat etc., at the rate of 8% on the amount billed by Handling and Transportation Contractors is chargeable to tax under the CGST/KSGST Acts, 2017, if yes, at what is the applicable rate of tax and the HSN/SAC code applicable.
The coram of Dr.M.P.Ravi Prasad and Mashood Ur rehman Farooqui ruled that the services of the applicant to supervise the handling & transportation “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 at the rate of 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.Subscribe Taxscan AdFree to view the Judgment