In re Sadbhavna Seva Foundation (GST AAR Gujarat)
In Authority for Advance Ruling, Gujarat, the applicant, a Section 8 non-profit company registered under Section 12AB of the Income-tax Act, sought an advance ruling on whether its activities of plantation and maintenance of trees qualify as “charitable activities” under Entry No. 1 of Notification No. 12/2017-CT(R) dated 28.06.2017 (as amended), and whether such activities are exempt from GST. The applicant is engaged in large-scale plantation and post-plantation maintenance activities, including avenue plantation, soil preparation, watering, application of manure and pesticides, replacement of dead plants, installation of tree guards, and other ancillary works necessary to ensure survival of trees. These activities are undertaken on roadsides, barren lands, dividers, private lands, and other non-forest areas, including projects under government schemes such as the Harit Van Path Yojna on a PPP basis.
The Authority examined whether the applicant satisfied the conditions of Entry No. 1, which grants GST exemption to services by entities registered under Section 12AA/12AB of the Income-tax Act when provided by way of “charitable activities,” including preservation of environment. It was noted that the applicant holds valid registration under Section 12AB, fulfilling the first condition. The Authority further examined the scope of “charitable activities” as defined in clause 2(r) of Notification No. 12/2017-CT(R), which expressly includes preservation of environment, including watersheds, forests, and wildlife.
