AI Drafter 
TaxTMI 
TaxTMI 
2022 (9) TMI 366
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....he outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant is stated to be engaged in the business of cultivation, planting and nurturing of fruit trees like citrus lemon, pomegranate etc in marginalised areas and mangrove seeds and seedlings in coastal areas across different states of the country with the sole aim of environmental protection against climate change. The applicant carries out these activities pursuant to the contracts awarded by internationally acclaimed environmental organizations. 1.3 The applicant has made this application under sub section (1) of section 97 of the GST Act and the ru....
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....of fruit trees, as submitted by the applicant, are as under: (i) Initially, the land identification is made for planting activity and also people are identified who would nurture and take care of such activities. (ii) Along with this, viability check report is procured by the expert team of the applicant in terms of water availability for fruit trees and identification of small and marginal farmers who will be benefitted from the produce of the trees planted. (iii) Thereafter, a nursery is set up in nearby locality or near the identified area where saplings are grown from seeds to be planted in this arena. Nursery lands are taken on lease for 3 to 5 years from the local farmers. The applicant assists the farmers by providing quality saplings which are developed in the said nurseries or purchased from nearby nurseries. (iv) Just after the Rabi and Kharif harvest season, the farmers are encouraged and helped to plant fruit trees in a small part of their land holdings. The applicant provides them all resources and infrastructure, both in terms of monetary as well as non-monetary. (v) The applicant assists the farmers with organic fertilizer....
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....gricultural operation, in certain cases. [Section2 (1A)(c)]. 2.8 The applicant submits that Hon'ble Supreme Court of India had elaborately explained what constitute the term agriculture in depth in the case of CIT v. Raja Benoy Kumar Sahas Roy (1957) 32 ITR 466 (SC). It is a landmark case for the understanding of the term agriculture under the Income Tax Act. This judgment makes it clear that the term 'agriculture' is "cultra", i.e., cultivation of the "agar" i.e., field / land. In other word, raising of a product through the use of human skill and labour on land may be classified as agricultural activity. The "product should have some utility either for consumption, for trade and commerce. The term "Agriculture" receives a wider interpretation both with regard to its "operations" as well as the "results" of such operation. 2.9 The applicant submits that in the light of the definition given in the Income Tax Act and above referred landmark decision of the Hon'ble Supreme Court of India on the matter, following ingredients must exist in an Agricultural Income: o Existence of Land, o Ownership of Land is immaterial, o Cultivation of land is must, ....
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.... described in serial No.24 of Notification-11/2017 Central Tax (Rate) and therefore would attract NIL rate of GST. However, as per serial number 4(vii) of Explanation appended to the said notification, "agriculture produce" means any produce out of 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, on which either no further processing is done or such processing is done as usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market. No such essence of cultivator activities is found in the nature of work of the applicant. 3.3 Moreover, the Telangana Authority of Advance Ruling, in the cases of Ganga Kaveri Seeds Pvt Ltd and Narasimha Reddy & Sons respectively, has applied the principle of ejusdum generies, that is general words should take colour of the specific words and accordingly these rules held that raw material used in definition of agricultural produce is confined to food, fibre and fuel, which can be consumed but seeds are not consumed but cultivated. The specific words indicate direct cons....
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....he sole aim of environmental protection against climate change. According to the applicant, while planting and nurturing of different fruit trees aims to create sustainable livelihoods and provide nutritious food to the families and community residing in the nearby planting activities, the sole object of plantation of mangrove seeds is to enhance biodiversity and re-establish ecosystem function to protect the islands and the populace from erosion. 4.3 The applicant is of the opinion that both the aforesaid activities is covered under the term "Agricultural Services" as described in Notification No. 11/2017 - Central Tax (Rate) under Serial No 24 with Heading 9986 and read as "Support Service to agriculture, forestry, etc." having NIL rate of GST. 4.4 The relevant extract of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 is given below for ease of reference: SI.No. Chapter, Section or Heading Description of Service Rate (per cent) Condition (1) (2) (3) (4) (5) 24 Heading 9986 Support services to agriculture, forestry, fishing, animal husbandry. Explanation. - "Support services to agriculture, forestry, fishing, animal h....
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....re is a very broad term encompassing all aspects of crop production, livestock farming, fisheries, forestry, etc. We find that the term "Agriculture" is not defined under the GST Act. However, section 2(a) of the National Bank for Agriculture and Rural Development Act, 1981 defines 'agriculture' in an inclusive manner as follows: "agriculture" includes horticulture, animal husbandry, forestry, dairy and poultry farming, pisciculture, and other allied activities, whether or not undertaken jointly with agriculture and the expression "agricultural operations" shall be construed accordingly . Explanation :- For the purposes of this clause, "pisciculture" includes the development of fisheries, both inland and marine, catching of fish and all activities connected therewith or incidental thereto; 4.7 On perusal of the aforesaid definition of 'agriculture', it transpires that horticulture is covered under agriculture. Horticulture is the branch of plant agriculture dealing with garden crops, generally fruits, vegetables, and ornamental plants. The word is derived from the Latin hortus, "garden," and colere, "to cultivate." As a general term, it covers all forms of gard....