In re TP Paradeep Transmission Limited (GST AAR Odisha)
The application before the Odisha Authority for Advance Ruling (AAR) concerned whether statutory deposits made towards Net Present Value (NPV), Compensatory Afforestation, Dwarf Plantation, Site Specific Wildlife Conservation Plan, Plantation of Dwarf Species, and other CAMPA-related charges for obtaining forest clearance constitute consideration for a supply of services under the GST law, whether such payments qualify for exemption under Notification No. 12/2017-Central Tax (Rate), and whether GST is payable under the forward charge or reverse charge mechanism.
The applicant is engaged in the transmission of electricity and construction of transmission lines and substations in Odisha. For establishing transmission infrastructure, the applicant is required to obtain forest clearance because portions of the project pass through forest land. Under the Forest (Conservation) Act, 1980, diversion of forest land for non-forest purposes requires approval from the Ministry of Environment, Forest and Climate Change. The forest clearance process includes submission of applications, scrutiny by State authorities, Stage-I approval, compliance with prescribed conditions including payment of NPV and other CAMPA-related charges, and Stage-II approval permitting diversion of forest land. These payments are deposited into the State CAMPA Fund pursuant to demand notices issued by the Forest Department.
