In response to a recent application filed by M/s Karnataka Food and Civil Supplies Corporation, the Karnataka Appellate Authority of Advance Ruling (AAAR) maintained the order of Authority of Advance Ruling (AAAR) and stated that renting of commercial space in the immovable property will attract GST Rate 18% 
As we revealed above M/s Karnataka Food and Civil Supplies Corporation is the applicant in this matter. It comes under the Government of Karnataka and was established with the aim to supply food grains and other essential goods and services under the Public Distribution System Scheme and also concerts several other Government schemes to fulfill consumers’ requirements.
The Applicant signed an agreement with Central Warehousing Corporation (CWC) to use the storage space at Central warehouse, Belgaum to store their commodities. According to the agreement Central Warehousing Corporation (CWC) provided storage space of 488sq meters at a rate of ₹ 126 per sq. metre/ month or Part on a gross area basis.
CWC was including GST on the storage charges but the appellant has not paid the GST part thus CWS halted the godown operation due to non-payment of the GST. Then the appellant reached AAR seeking an advance ruling on whether Goods and Services Tax is applicable on the Storage charges, Is GST will be applicable on the whole amount paid as consideration for storage charges or only on the storage of Tarahle food products such as palm oil, etc.
The AAR Karnataka in this matter held that the agreement basis storage services provided by the CWC to the applicant can be considered as renting of commercial space in immovable property 
D.P. Nagendra Kumar and M.S. Srikar members of the Appellate Authority upheld the order of the AAR Karnataka and said that renting of commercial space in the immovable property will attract GST at 18% rate.
