Case Law Details
In re M/s. The Cochin Plantations Ltd (GST AAR Kerala)
As per Notification No.12/2017-CT (Rate) Government has exempted intra-state supply of services covered under Heading 9986. As per this notification services relating to cultivation of plants or agricultural produce by way of ‘vacant land with or without a structure incidental to its use’ is exempted from tax liability.
In the instant case vacant land was given by erstwhile Cochin State to the applicant for cultivation on lease rent. Accordingly the petitioner converted the vacant land to Coffee Plantation. Therefore the lease rent collected by Government through Forest Department is exempted from GST vide Heading 9986 of Notification No.12/2017-CT (Rate) / SRO.No.371/2017. The lease rent received in relation to agricultural activities was also exempted under Service Tax regime also. In view of the observations stated above, the following rulings are issued:
The quit rent / lease rent paid to Kerala Government on the land used for agricultural purpose i.e. Coffee Plantation be classified under HSN 9986 and eligible for exemption under GST.
Quit rent / lease rent paid to Kerala Government on the land used for agricultural purpose is exempted from GST
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