A person has leased out his coffee estate along with standing plants & trees and getting monthly rentals. Is such rental receipts are exempt or to be treated as not a 'supply' or is it taxable under GST Law
GST Applicability
Ethirajan Parthasarathy
Debate on GST applicability for leasing coffee estates with plants: Commercial activity or exempt agricultural supply? A discussion on the applicability of GST to the leasing of a coffee estate with standing plants and trees resulted in varied opinions. Some participants argued that the lease is for commercial purposes, thus making it taxable under GST laws. Others suggested that it could be considered a composite supply, potentially exempt if it qualifies as an agricultural produce. However, the consensus leaned towards the lease being a commercial activity subject to GST, with some indicating that more details on the contract terms are necessary to determine any exemptions. (AI Summary)