Case Law Details
In re Avani infosoft Private Limited (GST AAR Karnataka)
From the scope of work it is seen that the applicant through their mara mitras not only educate and train farmers with regard to agro forestry through scientific research and knowledge, but are also involved in hand holding the farmers from recording demand for saplings, picking up the samplings from nurseries to their plantation and also monitoring post plantation survival.
Now we proceed to examine whether the activities of the applicant are covered under Agriculture Extension services. We invite reference to Explanation 2(C) appended to the Notification No. 9/2017-Integrated Tax (Rate) dated 28.06.2017, wherein the term “agricultural extension” is defined to mean application of scientific research and knowledge to agricultural practices through farmer education or training. In the instant case, the applicant, through mara mitras, provides education and training to the farmers for cultivation of plants / trees, by applying scientific research and knowledge. All the other activities of the applicant carried out through mara mitras from selection of saplings to assisting in transportation & planting, to monitoring the survival of plants are related to agricultural extension activity. Thus the services of the applicant are covered under agricultural extension services.
Notification No. 9/2017-Integrated Tax (Rate) dated 28.06.2017 exempts inter-state supply of certain services, whose description is specified under column 3 of the table. Entry No.57 of the said table exempts the services covered under SAC 9986 whose description at column 3 is as under:
Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of-
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