2025 (9) TMI 1073

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....rovisions of the CGST Act, Rules or the Notifications issued thereunder shall include a reference to the corresponding provisions of the KSGST Act, Rules or the Notifications issued thereunder. 3. The details of the questions on which advance ruling is sought are given above and are not being reproduced. 4. The contentions of the applicant: 4.1 The applicant submits that they have cultivated a rubber plantation on the land in question and have been paying quit rent or lease rent to the Government through the Forest Department. The issue prompting this application for advance ruling is the taxability of such rent paid for agricultural activities on the leased land. The Forest Department issued a notice to the applicant demanding tax....

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....ed either as goods or as services under SAC 997212 or 9973. The appropriate classification is under SAC 9986. The Government has exempted GST on intra-State supply of services falling under this heading, as per Entry No. 54 of Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. The exemption covers services relating to the cultivation of plants or agricultural produce by way of lease of vacant land, with or without a structure incidental to such use. It is also extended to support services related to agriculture, forestry, fishing, animal husbandry, and other similar activities. 5. Comments of the Jurisdictional Officer The application was forwarded to the jurisdictional officer as per provisions of Section 98(1) of the CGS....

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....28.06.2017. Accordingly, the questions raised for a ruling fall within the scope of clauses (a) and (b) of sub-section (2) of Section 97 of the CGST Act-namely, "classification of any goods or services or both" and "applicability of a notification issued under the provisions of this Act." Hence, the application is admitted for consideration on its merits. 7.2 The first issue to be clarified is the appropriate SAC (Services Accounting Code) applicable to the quit rent paid by the applicant for land used for agricultural purposes (specifically, a rubber plantation), namely, whether it should be classified under SAC Heading 9986 or 997212. Although "quit rent" is not defined under any specific statute, it is generally understood in practice....

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....y the Government through Forest Department is exempted from GST vide Heading 9986 of Notification 12/2017-Central Tax (Rate). In this regard, the exemptions under the said notification were verified and it is found that the same stands exempted under SI No 54 of the said notification which reads as under- SI.No. Service Code (Tariff) Description of Services Rate Condition 54 9986 Services relating to cultivation of plants ... (d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; Nil Nil 7.5 Therefore, it is evident that the service involved herein is exempted under SI No 54 of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017. 7.6 To....