Hiring of lockers is not transfer of right to use goods

Hiring of lockers is not transfer of right to use goods

Hiring of lockers is not transfer of right to use goods, as Bank is not mere transferring right to use but also providing various services in addition thereto. Bank never gives full possession of locker. It has lien over goods for the rent payable. Hence, hiring of lockers is not ‘right to use’ and is not taxable. – Bank of India v.  CTO  (1987) 67 STC 199 (Cal) * State Bank of India v. State of AP (1988) 70 STC 215 (AP HC DB) [However, now, GST is payable].

Allowing bank locker is not transfer of right to use goods as it is only license to use it. Further, locker is immovable property. It is not ‘deemed sale of goods’ – Oriental Bank of Commerce v. State of UP (2009) 20 STT 529 = 5 GST 54 = 33 VST 117 (All HC DB).