No GST on plantation of mangroves not being carried out by assessee for profit motive: AAR

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  • Last Updated on 25 January, 2023

GST Exemption

Case Details: Authority for Advance Rulings, Gujarat Vikas Centre For Development, In re - [2023] 146 398 (AAR-GUJARAT)

Judiciary and Counsel Details

    • Milind Kavatkar & Amit Kumar Mishra, Member
    • Rajesh I. Shah, Managing Trustee for the Appellant.

Facts of the Case

The applicant-assessee was a charitable trust which undertaken project of afforestation by plantation of mangrove trees in 200 hectare area along coastal belt of Bharuch district, Gujarat. It filed an application for advance ruling to determine whether aforesaid activity would be exempted vide Sl. No. 1 of Notification No.l2/20l7-Central Tax (Rate), dated 28-6-2017 which provides exemption to services by an entity registered under section 12AA of Income-tax Act, 1961.

AAR Held

The Authority for Advance Ruling observed that plantation of Mangrove trees for afforestation would have various benefit to protect environment like filtering environment, protecting vital coral reefs and sea grass beds from damaging siltation, acting as biological filters and sink for several pollutants etc. Due to aforesaid benefits of mangroves plantation, it was observed that activities of plantation of mangrove carried out by applicant-assessee would be covered under point (iv) of Charitable Activity under clause 2 (r) of Notification No. 12/2017-CT (R), dated 28-6-2017. Therefore, it was held that aforesaid services would be eligible for exemption and not liable to GST.

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