Services Related to Storage of Agricultural Produce Are Exempt from GST: ITAT
The applicant, Lakshmanan Sivalingam, is the owner of M/s Lena Modern Rice Mill. The owner has given the premises of the said business to a tenant for the installation of Machinery for Rice Mill and Godown for the storage of Paddy. However, the Tenant refused to pay GST on the rent for storing Paddy. Therefore, the assessee approached the Tamil Nadu Authority for Advance Ruling (AAR).
The main issue in this matter was whether the GST is payable on the rent received for the Godown used for storing Paddy.
The Tamil Nadu AAR observed that Paddy is the raw, unmilled/unprocessed crop, while rice is the milled and processed product, which is ready for consumption. The AAR concluded that paddy can be categorised as ‘agricultural produce’ and the services related to the storage or warehousing of agricultural produce are exempt from GST as per S.No. 54 of the Notification no.12/2017-CT (Rate) dated 28.06.2017.
Therefore, it was held that the rent received for giving the Godown for storing Paddy attracts a Nil rate of GST.
Case Citation: M/s Lena Modern Rice Mill (Tamil Nadu AAR); Advance Ruling No.47/AAR/2025; 17/11/2025
