The Gujarat Authority of Advance Ruling (AAR) ruled that 18% Goods and Service Tax (GST) on Fumigation services provided in the warehouse of agriculture produce.
The applicant, M/s. Shri Sai Pest Control has been providing service of pest control that completely fills an area with gaseous pesticides of fumigants to suffocate or poison the pests within. It is utilized for control of pests in Grain and produce and it is also used during the processing of goods to be imported or exported to prevent transfer of exotic organisms. It has highly recommended in transportation of goods-importation and exportation of goods-fumigation is a necessary requirement.
The applicant sought the advance ruling on the issue in respect of fumigation services provided in a warehouse of agriculture produce is taxable or Exempt vide Entry No. 54 of Not. No. 12/2017-CT (Rate) dated June 28, 2017; classification of Fumigation of such services under Service Accounting code 998531 is correct or not; and Determination of Tax liability to pay tax on such service.
The Coram consisting of Sanjay Saxena and Mohit Aggarwal observed that the fumigation services provided in a warehouse of agriculture produce is taxable in view of the above discussion.
The AAR clarified that the classification of Fumigation of such services Service Accounting Code is 99853. The rate of GST for the service of fumigation/pest control in a warehouse of agriculture produce would be 18% i.e. CGST 9% and SGST 9%.
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