TaxTMI 
TaxTMI 
2021 (7) TMI 480
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....erson who has taken the wet land on auction has to pay the agreed auction amount. 2. At the outset, the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under. 3. The applicant sought advance ruling on the following; Whether lease rent charged by Municipality / Panchayath for land i.e., water channel used for fish fa....
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.... exemption are (a) activity carried should be cultivation or rearing; (b) Cultivation or rearing should be of agricultural produce or animals. 4.2. The activity carried out is fish and crab farming. The term "rearing" means bring up and care for until they are fully grown, or care for until they are fully grown. The next condition is that the rearing should be of "animals". In this case, rearing is carried out in respect of fish and crab. The wet land is given on annual lease. This is clear from the allotment letter and agreement. The auction was carried out only to ascertain the tenant who quotes the highest rent. Merely for the reason that auction is done, does not take away the activity from renting. As per definitio....
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....SI No.54 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 is satisfied and the lease of vacant land for fish farming qualifies for exemption as per the said entry. 5. Contentions of the Jurisdictional Officer: 5.1. The jurisdictional officer submitted that SI.No.54 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 says that "Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of- (a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing; ....
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....05.01.2021. The Panchayat Secretary represented the applicant. He reiterated the contentions made in the application and requested to issue ruling on the basis of the submissions made by them. 7. Discussion and Conclusion: 7.1. The matter was examined in detail. The issue to be decided is whether the activity is covered by the exemption contained in the entry at SI No. 54 of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017. The entry at SI No. 54 of the said notification read as follows; "54. Heading - 9986 - Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by wa....
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....nd (3) the activity for which the land is provided should be cultivation of plants or rearing of animals. In the instant case the applicant is providing water channel (paruthithodu chaal in Chellanam) and there is no doubt that the water channel comes under the category of land. Thus the first condition is satisfied. The nature of provision of the land as evidenced by the allotment letter and agreement comes within the scope of definition of renting of immovable property in Para 2 (zz) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 and hence the second condition is satisfied. The vacant wet land is given on rent for rearing of fish and crabs. Thereby the third condition that the rearing should be of animals is sati....