TaxTMI 
TaxTMI 
GST on Horticulture development and maintenance services
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....ST on Horticulture development and maintenance services<br> Query (Issue) Started By: - Megha Jain Dated:- 1-4-2026 Last Reply Date:- 9-4-2026 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Dear Experts, I am a proprietorship concern, engaged in providing horticulture development and maintenance of IIT Guwahati campus. IIT Guwahati is an entity established by the Government of India un....
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....der the Ministry of Education. My query is regarding applicability of rate of tax (12% or 18%) on such services to the government entity. Reply By Sadanand Bulbule: The Reply: GST @ 18% is applicable on horticulture development and maintenance services provided to IIT Guwahati, as no concessional 12% rate is available for such services to Government entities post-2022 amendments. Reply By ....
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....Megha Jain: The Reply: The services were provided from FY 2017-18 to FY 2022-23. Reply By Pinnacle Tax Advisor: The Reply: There was no exemption on this. GST rate was 18% on horticultural service/Gardner service Reply By YAGAY andSUN: The Reply: The issue pertains to the applicable GST rate on horticulture development and maintenance services provided to Indian Institute of Technology....
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.... Guwahati, a Government Entity. Horticulture development and maintenance services are in the nature of pure services relating to upkeep of land/immovable property. Such services do not qualify as "works contract" under GST, as they do not involve construction, erection, or installation resulting in immovable property. In the absence of a specific entry prescribing a concessional rate, these ser....
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....vices fall under the residuary category, taxable at the standard rate of 18% in terms of Notification No. 11/2017-Central Tax (Rate). The concessional rate of 12% was historically available only for specified works contract services provided to Government, Governmental Authorities, or Government Entities, subject to strict conditions. Horticulture or gardening/maintenance services were never co....
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....vered within such concessional entries, and hence were not eligible for the reduced rate at any point in time. Further, amendments brought through Notification No. 15/2021-Central Tax (Rate) (effective 01.01.2022) withdrew the concessional rate of 12% even for eligible works contract services supplied to Government Entities, thereby subjecting such supplies to 18% GST. This reinforces the legis....
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....lative intent to tax such services at the standard rate. It is a settled principle under GST law that the nature of supply, and not the status of the recipient, determines the applicable rate. Therefore, merely because services are provided to a Government Entity like IIT Guwahati does not entitle the supplier to any concessional rate unless specifically notified. Accordingly, for the entire....
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.... period from FY 2017-18 to FY 2022-23, horticulture development and maintenance services provided to IIT Guwahati were: • Not exempt, and • Not eligible for 12% GST, and were rightly taxable at 18% (9% CGST + 9% SGST / 18% IGST). Reply By Megha Jain: The Reply: If we go through the definition of works contract as per sec 2(119) of the CGST Act, 2017, it cove....
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....rs repairs, maintenance, etc., of immovable property. So, horticulture development and maintenance of IIT Guwahati campus isn't covered under works contract service for the purpose of concessional rate of 12%? Reply By Shilpi Jain: The Reply: At present there is no concessional rate of tax for these services. 18% GST applicable. Reply By Shilpi Jain: The Reply: This needs further ana....
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....lysis since definition of goods does not cover standing crops. It would be immovable property<br> Discussion Forum - Knowledge Sharing ....