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 on lease of agricultural land: whether rental treated as agricultural income removes it from taxable supply under GST. Whether GST applies to rental receipts from leasing a coffee estate is queried, focusing on whether the lease constitutes a taxable supply or falls outside the scope of GST when the receipts are treated as agricultural income for income tax purposes, and whether such classification supports a conclusion that the transaction is not a business activity liable to GST.