AAR Grants GST Exemption on Tree Plantation and Maintenance By a Charitable Institution

The present application (no. Advance Ruling/SGST&CGST/2025/AR/30) has been filed by Sadbhavna Seva Foundation before the Gujarat Authority for Advance Ruling Goods and Services Tax D/5, Rajya Kar Bhavan, Ashram Road, Ahmedabad – 380 009.

The applicant is registered under Section 12AB of the Income-tax Act, 1961, vide Registration No. CIT (Exemption), Ahmedabad/12AA/2020-21/A/10604, but not under the GST Act. The applicant is incorporated under Section 8 of the Companies Act, 2013.

The applicant is involved in activities of charity, like preservation of the environment by planting and maintaining “plants,” “trees,” “shrubs,” and/or “hedges.”

Questions Asked by Applicant:

Seeking the present advance ruling no. GUJ/GAAR/R/2025/64, the applicant has asked the following questions:

“Question 1. Whether, in the facts and circumstances of the case, entry no. 1 of Notification No. 12/2017 (as amended from time to time) applies to the charitable activity of plantation and maintenance of trees (more particularly described in the Statement of Relevant Facts) by the applicant, being a Charitable Institution, duly recognised u/s. 12AA of the Income-tax Act, 1961, for Preservation of Environment?

Question 2. Whether, in the facts and circumstances of the case, the applicant, being a charitable institution duly recognised u/s. 12AA of the Income-tax Act, 1961, liable to pay tax on the charitable activity of planting and maintaining trees? If yes, then to what extent and at what rate?”

Answers Given by Gujarat AAR:

The Gujarat Authority for Advance Ruling has given the following answers to the questions asked by the applicant:

Answer 1: Yes, entry no. 1 of Notification No. 12/2017 dated June 28, 2017, applies to the charitable activities provided by the applicant (i.e., plantation and maintenance of “Plants,” “Trees,” “Shrubs,” and/or “Hedges”) being registered under Section 12AB of the Income-tax Act, 1961, for preservation of the environment.

Answer 2: No, the applicant, being a Charitable Trust registered under Section 12AA of the Income-tax Act, 1961, is not liable to pay tax on charitable activity provided by it, meaning the applicant is eligible for GST exemption under Sl. No. 1 of Notification No. 12/2017 dated June 28, 2017, as amended.