{"id":91039,"date":"2026-11-12T14:30:00","date_gmt":"2026-11-12T09:00:00","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/?p=91039"},"modified":"2026-11-12T14:30:00","modified_gmt":"2026-11-12T09:00:00","slug":"gst-cold-storage-potato-west-bengal","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/gst-cold-storage-potato-west-bengal\/","title":{"rendered":"GST on Cold Storage in West Bengal: Potato Storage Exemption, Processed Goods at 18%, Licences and Income Tax"},"content":{"rendered":"

Storage and warehousing of agricultural produce is exempt from GST, so a West Bengal cold storage that stores potatoes, onions, fruits and vegetables for farmers and traders charges no GST on its rent. Loading, unloading, packing and grading of agricultural produce are also exempt. Storage of processed goods such as frozen foods, potato chips, dairy products or medicines is taxable at 18%.<\/strong> Since West Bengal is one of India’s largest potato producers, most cold storages in Hooghly, Bardhaman, Paschim Medinipur and Bankura are mainly exempt suppliers, which affects their GST registration and input tax credit.<\/p>\n

GST on cold storage services<\/h2>\n
\n\n\n\n\n\n\n\n\n\n\n
Service<\/th>\nGST<\/th>\n<\/tr>\n<\/thead>\n
Storage or warehousing of potatoes, vegetables, fruits and other agricultural produce<\/td>\nExempt<\/td>\n<\/tr>\n
Loading, unloading, packing, storage of agricultural produce<\/td>\nExempt<\/td>\n<\/tr>\n
Storage of processed or frozen foods, chips, dairy, ice cream<\/td>\n18%<\/td>\n<\/tr>\n
Storage of medicines and pharmaceuticals<\/td>\n18%<\/td>\n<\/tr>\n
Renting the whole cold storage building to another operator<\/td>\n18% (renting of immovable property)<\/td>\n<\/tr>\n
Sale of potatoes by a trader<\/td>\nExempt (fresh vegetables)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

What counts as agricultural produce?<\/h2>\n

Produce from cultivation of plants and rearing of animals (except horses) for food, fibre, fuel or raw material, with no processing, or only the processing usually done by a cultivator that does not change its essential character (cleaning, drying, sorting, grading). Potatoes kept in cold storage remain agricultural produce. Potato flakes or chips do not.<\/p>\n

Do cold storages need GST registration?<\/h2>\n

A cold storage supplying only exempt services does not need to register. If it also stores taxable goods or rents space for processed food, and the taxable turnover crosses \u20b920 lakh, it must register and charge 18% on those services. Input tax credit is then allowed only in proportion to taxable supplies, so keep separate records of space used for exempt and taxable storage.<\/p>\n

Other compliance<\/h2>\n