TaxTMI 
TaxTMI 
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
18 Aug 2022 
6 Replies 
4615 Views Asked by
GST on leasing of agricultural estate: leasing treated as taxable supply unless statutory exemption or factual classification applies.
Whether monthly rentals from leasing a coffee estate with standing plants and trees are taxable under GST depends on classification: if the transaction is renting/leasing of immovable property for commercial purposes it is liable to GST; alternatively, if standing plants constitute the dominant supply and the transfer qualifies as agricultural produce or meets conditions of the exemption notification for leasing agricultural land, exemption may apply. Detailed contract terms and factual findings determine the applicable treatment. (AI Summary)
Whether monthly rentals from leasing a coffee estate with standing plants and trees are taxable under GST depends on classification: if the transaction is renting/leasing of immovable property for commercial purposes it is liable to GST; alternatively, if standing plants constitute the dominant supply and the transfer qualifies as agricultural produce or meets conditions of the exemption notification for leasing agricultural land, exemption may apply. Detailed contract terms and factual findings determine the applicable treatment. (AI Summary)