Case Law Details
Regional Agricultural Research Station (GST AAR Kerala)
Introduction: The Authority for Advance Ruling (AAR) in Kerala has provided a crucial clarification regarding the applicability of GST on ticket charges for agricultural exhibitions. This ruling came in response to an application by the Regional Agricultural Research Station (RARS), Pilicode, Kasaragod, a pioneer institute under the Kerala Agricultural University.
Detailed Analysis: RARS sought an advance ruling to determine if they could avail tax exemption under the GST Act for ticket charges collected during the “Farm Carnival 2023- Saphalam,” an event aimed at showcasing their agricultural research and developments to the public. The carnival featured exhibitions on various agricultural technologies and practices, seminars, and practical training sessions, designed to benefit farmers and the general populace without generating significant revenue.
The AAR analyzed the case under the provisions of the Central Goods and Services Tax Act, 2017 (CGST Act), and the Kerala State Goods and Services Tax Act, 2017 (KSGST Act), particularly focusing on the activities enlisted under Article 243G of the Constitution. These activities are typically entrusted to Panchayats and include agriculture and agricultural extension among others.
The ruling emphasized that services provided by a “Governmental Authority” related to functions entrusted under Article 243G are exempt from GST as per Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. Since RARS is a constituent institution of the Kerala Agricultural University and operates under the Kerala Agriculture University Act, 1971, it falls within the definition of a “Governmental Authority.” Consequently, the ticket charges collected for admissions to exhibitions directly related to agricultural extension activities are exempt from GST. However, any additional activities not related to the functions under Article 243G, including entertainment events or amusement parks, would attract a GST rate of 18%.
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