Charitable tree plantation and environmental preservation qualify for GST exemption under the notified charitable activities entry.

Plantation and maintenance of trees by a trust registered under section 12AB was treated as a charitable activity because the GST exemption for services by a registered charitable entity covers activities relating to preservation of the environment, including forests and wildlife. The trust deed expressly included tree plantation, and the activity under the tree plantation scheme was directed toward increasing tree cover and environmental preservation. On that basis, the activity fell within Entry No. 1 of Notification No. 12/2017-CT(R) and was exempt from GST.

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Issues: Whether plantation and maintenance of trees by a registered charitable trust engaged in preservation of environment falls within Entry No. 1 of Notification No. 12/2017-CT(R) dated 28.06.2017 and is exempt from GST.

Analysis: Entry No. 1 grants nil rate to services by an entity registered under section 12AA or 12AB of the Income-tax Act, 1961 by way of charitable activities. The notification defines charitable activities to include activities relating to preservation of environment including watershed, forests and wildlife. The applicant's trust deed included tree plantation activities, and its registration under section 12AB of the Income-tax Act, 1961 was valid for the relevant assessment years. The activity under the Gujarat tree plantation scheme was found to be directed towards increasing tree cover and preserving the environment, which brought it within the statutory definition of charitable activities.

Conclusion: The activity of plantation and maintenance of trees by the applicant qualifies as a charitable activity covered by Entry No. 1 of Notification No. 12/2017-CT(R) dated 28.06.2017, and the applicant is exempt from payment of GST on such activity.

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