In India, cold storage services are subject to GST (Goods and Services Tax) as they are considered a taxable service under the GST regime.
The rate of GST applicable on cold storage services is 18% (as of September 2021) under the category of storage and warehousing services. However, certain exemptions and lower rates may apply based on the nature of services provided and the location of the cold storage.
If the cold storage is used for storing agricultural produce, the GST rate may be lower. For instance, the GST rate on cold storage services for agricultural produce, including fruits and vegetables, is 12%. This lower rate is applicable to both temperature-controlled and non-temperature-controlled storage facilities.
It's important to note that cold storage services provided by a government entity or a local authority are exempt from GST.
If the cold storage services are provided as part of a larger package of services, such as a comprehensive logistics or supply chain management service, the GST rate may vary based on the nature of services provided.
In summary, GST is applicable on cold storage services in India at the standard rate of 18%, subject to certain exemptions and lower rates that may apply based on the nature of services provided and the location of the cold storage.
Under the GST (Goods and Services Tax) regime in India, businesses can claim Input Tax Credit (ITC) on machinery and equipment purchased for use in their business, subject to certain conditions. This includes cold storage machinery used in a cold storage facility.
To claim ITC on cold storage machinery, the following conditions must be met:
The taxpayer must be registered under GST and have a valid GSTIN (GST Identification Number).
The machinery must be purchased for use in the business, and the ITC can only be claimed on the GST paid on the purchase of the machinery.
The taxpayer must possess a valid tax invoice or a debit note issued by the supplier, which includes details of the machinery, the GST paid, and other required details.
The machinery must be used for taxable supplies, i.e., supplies that are subject to GST.
The taxpayer must have furnished all required GST returns and paid any outstanding taxes due.
Assuming that the above conditions are met, businesses can claim ITC on the GST paid on cold storage machinery, which can be set off against their GST liability on their taxable supplies.
It's important to note that there are certain restrictions and limitations on claiming ITC under the GST regime, and businesses must comply with the relevant rules and regulations to avoid any penalties or liabilities. Therefore, it's advisable to consult with a tax professional or an accountant for specific guidance on claiming ITC for cold storage machinery.
Under the Goods and Services Tax (GST) regime in India, the provision of renting or leasing of immovable property is considered a taxable supply of services. Therefore, if a cold storage facility is leased or rented for storage purposes, GST will be applicable on the rental or lease amount.
The GST rate applicable on rental or leasing of immovable property is 18% (as of September 2021). However, certain exemptions and lower rates may apply based on the nature of the services provided and the location of the cold storage.
For example, if the cold storage is used for storing agricultural produce, the GST rate may be lower. The GST rate on cold storage services for agricultural produce, including fruits and vegetables, is 12%.
If the rental or leasing of the cold storage facility is part of a larger package of services, such as a comprehensive logistics or supply chain management service, the GST rate may vary based on the nature of services provided.
It's important to note that if the cold storage facility is owned by a government entity or a local authority, the rental or lease of such property is exempt from GST.
In summary, GST is applicable on the rental or lease of cold storage facilities in India at the standard rate of 18%, subject to certain exemptions and lower rates that may apply based on the nature of services provided and the location of the cold storage.
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