Exemptions under GST related to Warehouse and Banking Services

Under the Goods and Services Tax (GST) regime, there are certain exemptions related to warehouse and banking services. So, let’s take a look into the Services related to warehouse and banking and the exemptions thereunder in this article. 

Warehouse-Related Services Under GST:

Under the Goods and Services Tax (GST) warehouse-related services are classified as a type of supply of services and are subject to GST. The GST rate for warehouse-related services is 18%. Warehouse-related services include activities such as loading and unloading of goods, packing and unpacking of goods, and storage of goods. The services may be provided by a third-party warehousing agency or by the owner of the warehouse itself.

Some examples of warehouse-related services subject to GST are:-

• Renting of warehouses and storage facilities
• Loading and unloading of goods at the warehouse
• Packing and unpacking of goods
• Transportation of goods to and from the warehouse
• Maintenance and upkeep of the warehouse
• Security services for the warehouse

Exemptions for Warehouse-related Services Under GST:

• Services by a warehousing agency or a person providing storage facilities for agricultural produce are exempt from GST.

• Services by a registered person to an unregistered person in relation to the warehousing of goods are exempt from GST.
• Services by way of renting or leasing of agro machinery or vacant land with or without a structure incidental to its use for agriculture or agricultural produce are exempt from GST.

Banking-Related Services Under GST:

Under the Goods and Services Tax (GST) in India, banking-related services are classified as a type of supply of services and are subject to GST. The GST rate for banking-related services is 18%.

Banking-related services include a wide range of activities performed by banks and other financial institutions, such as lending and borrowing money, issuing credit and debit cards, providing investment advice, and offering various types of insurance.

Some examples of banking-related services subject to GST are:-

• Loans, advances, and overdrafts
• Bank account maintenance fees and charges
• ATM and debit card usage fees
• Credit card issuance and usage fees
• Investment and insurance services provided by banks and financial institutions

Exemptions for Banking-related Services under GST:

• Services provided by an individual Direct Selling Agent (DSA) to a banking company or a non-banking financial company (NBFC) are exempt from GST.
• Interest on loans, overdrafts, or cash credits provided by banks or financial institutions is exempt from GST.
• Services provided by a business facilitator or a business correspondent to a banking company or an NBFC are exempt from GST.

It is important to note that these exemptions are subject to certain conditions and limitations, and businesses should consult with their tax advisors to determine their eligibility for these exemptions.

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