TaxTMI 
TaxTMI 
2022 (7) TMI 502
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....y) by M/s. Sri Vinayaka Hatcheries (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: The applicant i.e., M/s. Sri Vinayak Hatcheries had executed an agreement with Grobest Feeds Corporation (India) Private Limited for the purpose of taking a vacant land with a water channel meant for fish/ prawn farming. The applicant approached the Authority seeking advance ruling on the applicability of GST on renting of Land. The applicant had filed an application in form GST ARA-01 dated 18.02.2022 by paying required amount of fee and approached the Authority for Advance Ruling on the applicability of GST Tax rates on the above activity. 4. Questions raised before the authority: The applicant seek Advance Ruling on the applicability of GST on renting of Land and whether the activity of Fish/Prawn Farming is covered under "services relating to rearing all life forms of animals- by way of renting or leasing of vacant land" and eligible for GST exemption as per SI.No.54 of notification No.12/2017 central tax (Rate) dt: 28.06.2017 and corresponding notification under Andhra Pradesh GST. On Verification of basic....
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....ty" means allowing, permitting or granting access, entry, occupation use or any such facility, wholly or partly, in an immovable property and includes letting, licensing or other similar arrangements in respect of immovable property. From the above definition, it is clear that the arrangement between the lessor and the lessee, Sri Vinayaka Hatcheries clearly comes within the meaning of renting. 3. The last condition is that the renting should be of vacant land with or without structure incidental for its use. As per Black's Law Dictionary, "land" includes not only the soil or earth, but also things of permanent nature affixed thereto or found therein, whether by nature as water, trees, grass, herbage, other natural or perennial products, growing crops or trees, mineral under the surface, or by hand of man buildings, fixtures, fences bridges as well as works constructed for use of water, such as dikes, canals etc. It is thus clear that 'ponds' fall within the meaning of term `land'. Thus, all the conditions stipulated in SI.No 54 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 are satisfied and the lease of vacant land for fish/ prawn farming q....
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....l characteristics of agricultural produce but make it only marketable for the primary market; (d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (e) loading, unloading, packing, storage or warehousing of agricultural produce; (f) agricultural extension services; (g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce; (h) services by way of fumigation in a warehouse of agricultural produce. - Nil" Primarily, we discuss the contention of the applicant that fish and prawn farming is covered under 'rearing of all life forms of animals', which means 'care for the younger ones until they are fully grown'. If we clearly examine the entry under 9986, the thrust is on services relating to 'cultivation of plants' and 'rearing of all life forms of animals'. Cultivation of plants is essentially 'agriculture' while 'rearing of all life forms of animals' is 'animal husbandry'. Animal husbandry is the branch of agriculture where animal....
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....cial renting of any other land without any reference to the purpose of usage of the land. It is open ended that the land might be used by the lessee for any other intended purpose in the absence of any specification as such. The activity of lease/license to occupy land is supply of service as per Schedule II of CGST Act, 2017 as presented below. SCHEDULE II [See Section 7 of the CGST Act] 1) "Activities or Transactions" to be treated as Supply of Goods or Supply of Services 2) Land and Building (a) any lease, tenancy, easement, licence to occupy land is a supply of services; (b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services." This would lead to the conclusion that the lease of vacant land would obviously be covered under heading 9972 vide notification no 11/2017 central tax (Rate) dt: 28.06.2017 and is taxable. SI.No. Chapter, Section or Heading Description of Service Rate (per cent.) 16 9972 Real estate services 18% 997212 Rental or leasing services involving own or lease....