In re Vikas Centre For Development (GST AAR Gujarat)
Afforestation of plants carried out by charitable trust is exempted from the levy of GST
The AAR, Gujarat in the matter of M/s Vikas Centre for Development [Advance Ruling No. GUJ/GAAR/R/2022/50 dated December 30, 2022] has ruled that activity of plantation is to be considered as charitable activity carried on by a Charitable Trust and is exempted from the levy of GST under Sr. No. 1 of Notification No. 12/2017- Central tax (Rate) dated June 28, 2017 (“the Services Exemption Notification”). Further, the activity of the Charitable Trust is not covered under the ambit of ‘supply’, hence, not liable to register under GST.
Facts:
M/s Vikas Centre for Development (“the Applicant”) is a charitable trust which undertake, promote and support activities leading to promotion of human development and welfare among general public. The Applicant entered into an agreement with Pilot Project which is designed to explore various plantation densities from 2500 up to 10,000 plants per hectare. The Pilot Project is a socially relevant & environmentally resilient afforestation project along the coast of Gujarat.
The Applicant further submitted that the afforestation activity carried on by them includes plantation of mangroves and is related to “preservation of environment”. Therefore, the Applicant submitted that the activity shall be exempted under Sr. No. 1 of the Services Exemption Notification.
Issues:
1. Whether the activity of afforestation, which includes the plantation of mangroves is exempted from GST?
2. Whether the Applicant is required to be get registered under GST?
Held:
The AAR, Gujarat in Advance Ruling No. GUJ/GAAR/R/2022/50 held as under:
