Cold storage, warehousing and loading-unloading of agricultural produce is fully exempt under Notification 12/2017-CT(R). Cold storage of processed, branded or non-agricultural goods — processed foods, ice-cream, dairy beyond primary stage, pharmaceuticals — is taxable at 18%. Renting the cold-storage building as immovable property is also 18%. GST 2.0 (22 Sep 2025) did not change this.
GST on Cold Storage — Decision Table
The GST treatment turns on whether the goods stored are "agricultural produce". Below is every common cold-storage and warehousing scenario, with ITC eligibility.
| Service / Goods Stored | GST | ITC | Notes |
|---|---|---|---|
| Cold storage — agricultural produce | Exempt | N/A | No GST charged (Notif. 12/2017) |
| Warehousing — agricultural produce | Exempt | N/A | Same exemption as cold storage |
| Cold storage — processed / branded food | 18% | Yes | SAC 996729 / 998619 |
| Cold storage — ice-cream, frozen dessert | 18% | Yes | Manufactured product |
| Cold storage — dairy beyond primary | 18% | Yes | Processed dairy (not raw milk) |
| Cold storage — pharmaceuticals / vaccines | 18% | Yes | Not agricultural produce |
| Cold storage — chemicals / other goods | 18% | Yes | SAC 996729 |
| Renting the cold-storage building | 18% | Yes | Renting of immovable property |
Cold-storage/warehousing treatment was retained under the GST 2.0 two-slab structure effective 22 September 2025. Confirm the item's classification on gst.gov.in before invoicing.
Exempt or 18% — What Decides It?
One test decides the GST on a cold-storage service: are the goods "agricultural produce"? Store raw farm produce and it is exempt; store anything processed, branded or non-agricultural and the service is taxable at 18%.
Agricultural produce — no GST
- Fruits, vegetables, grains, cereals, pulses
- Raw spices, cotton (ginned/baled), copra
- Raw milk and primary farm produce
- Storage, warehousing & loading-unloading
- Notification 12/2017-CT(R)
Processed / non-agricultural — with ITC
- Processed & branded packaged foods
- Ice-cream, frozen desserts, dairy beyond primary
- Pharmaceuticals, vaccines, chemicals
- Renting the cold-storage building
- SAC 996729 / 998619 · ITC available
"Agricultural produce" means produce on which no further processing is done — or only processing (cleaning, grading, sorting, packing) usually done by a cultivator that does not change its essential characteristics. Once an item is manufactured, branded or processed beyond the primary stage (e.g. raw milk → ice-cream, fresh fish → processed seafood), it stops being agricultural produce and its cold storage becomes taxable at 18%.
Not sure if your stored goods are exempt or taxable?
Get My GST Position →What Counts as "Agricultural Produce"?
The exemption covers storage of produce on which no processing — or only primary processing done by the cultivator that does not alter its essential character — has been carried out. This table shows how common items fall on either side of the line.
| Item Stored | Cold Storage GST | Why |
|---|---|---|
| Fresh fruits & vegetables | Exempt | Primary sorting/grading allowed |
| Grains, cereals, pulses (rice, wheat) | Exempt | Agricultural produce |
| Raw spices, unprocessed | Exempt | No further processing |
| Cotton — ginned / baled | Exempt | Named in the notification |
| Raw / fresh milk | Exempt | Primary produce |
| Fresh seafood (unprocessed) | Exempt | If not further processed |
| Ice-cream, frozen desserts | 18% | Manufactured product |
| Processed / branded packaged food | 18% | Processing changes character |
| Frozen / processed seafood | 18% | Processed beyond primary stage |
| Pharmaceuticals | 18% | Manufactured, not agricultural |
Borderline items (dairy, seafood) turn on the degree of processing — get a classification opinion where value is significant.
Cold Storage of Processed & Non-Agricultural Goods — 18%
Where goods are not agricultural produce, cold storage is a taxable supply of service at 18% (SAC 996729 / 998619). The operator raises a GST invoice (9% CGST + 9% SGST intra-state, or 18% IGST inter-state) and the business storing the goods can claim Input Tax Credit where used for its taxable business.
- Processed and branded foods, ready-to-cook and frozen meals — 18%.
- Ice-cream, frozen desserts and dairy beyond the primary stage — 18%, as manufactured products.
- Pharmaceuticals, vaccines and temperature-sensitive drugs — 18%.
- Renting the cold-storage building as immovable property is 18% — distinct from the storage service itself.
A single cold-storage facility can carry both treatments at once — exempt for a batch of potatoes and taxable for a batch of ice-cream. Operators must classify each contract correctly and, where they supply both, run proportionate ITC reversal on common inputs (electricity, refrigerants, maintenance) under Rule 42/43.
Storing processed goods or running a mixed facility? Get your invoicing & ITC set up right.
Talk to a GST Expert →ITC & Registration for Cold Storage Operators
An operator supplying only exempt agricultural-produce storage cannot claim ITC and bears input GST (electricity, refrigerants, maintenance) as a cost. An operator with taxable supplies can claim ITC; a mixed operator must reverse the ITC attributable to exempt storage under Rule 42/43.
| Operator profile | ITC? | Reason |
|---|---|---|
| Only agri-produce (exempt) storage | No | Wholly exempt supply — input GST is a cost |
| Only taxable (non-agri) storage | Yes | Normal ITC on common inputs |
| Mixed exempt + taxable storage | Partial | Proportionate reversal — Rule 42/43 |
| Client storing taxable goods | Yes | Claims 18% GST paid as ITC |
Registration is mandatory once aggregate turnover crosses ₹20 lakh (₹10 lakh in special-category states); an operator making only exempt supplies may stay outside GST.
Businesses storing taxable goods — pharma, food processors, beverage makers — can credit the 18% cold-storage GST against their output liability, subject to normal ITC conditions.
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