GST Applicability - Lease of Agricultural Land

[Ethirajan Parthasarathy]

A GST registered person wishes to lease out the coffee estate instead of himself exploiting the same. My doubt is whether GST is payable on such lease / rental income from the agricultural property. For purpose of Income Tax, the rental income can also be treated as “agricultural income”. Whether this will help us to take a stand that it is not a business activity.

Experts may also give their opinion whether I can take shelter under AAR in the case of The Cochin Plantations Ltd-2018 (11) TMI 280 dated. 20.10.2018 (AAR-Kerala)

[Sadanand Bulbule]

Dear Sir

Please revisit your own query vide ID No.118121 dated 18/08/2022 which is well covered by the experts' opinions.

[Ethirajan Parthasarathy]

Dear Mr.Sadanand,

I thank you for your feedback. The matter was initiated by the client two years back & later kept it on hold. Now it is slated to be implemented from 1st April.

Somehow I overlooked that this question has already been posted & replies received.

I am sorry about the lapse on my part.

Thanks Again..

Ethirajan

[Sadanand Bulbule]

Sir, many a times it happens. Anyway it is a reminder to others as well.

AI Summary

GST Applicability on Coffee Estate Leasing: Is Rental Income Exempt as Agricultural Income? A GST-registered individual inquired about the applicability of GST on leasing a coffee estate, questioning whether such rental income, considered 'agricultural income' for income tax purposes, could be exempt from GST as a non-business activity. The individual referenced a previous case involving The Cochin Plantations Ltd for guidance. A respondent pointed out that the query had been previously addressed, and the original poster acknowledged the oversight, noting that the matter is now set to proceed. The exchange served as a reminder of the importance of revisiting past discussions for clarity.