GST Exemption Allowed for Tree Plantation and Maintenance by Charitable Trust: Gujarat AAR:

GST Exemption Allowed for Tree Plantation and Maintenance by Charitable Trust: Gujarat AAR The present application (no. Advance Ruling/SGST&CGST/2025/AR/28) has been filed by Manav Seva Charitable Trust before the Gujarat Authority for Advance Ruling (AAR) Goods and Services Tax (GST) D/5, Rajya Kar Bhavan, Ashram Road, Ahmedabad – 380 009. The applicant is not registered under the GST Act but is registered under Section 12AB of the Income Tax Act 1961. The trust is located at Pipaliya Bhawan, Satkar-A Complex, Gondal Road, Opp Swaminarayan Gurukul, Rajkot, Gujarat, 360002.

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The trust is involved in charitable activities, like preservation of the environment by way of planting "plants," "trees," "shrubs," and/or "hedges", and their maintenance. The said activity involves, Avenue Plantation, which further involves, digging of ground and making of basin, weeding, and removal of undesirable vegetation, hoeing, cleaning, levelling, watering of plants, spreading of manure/fertilizer/soil conditioners, filling/re-filling of soil, application of pesticide/insecticide/anti-termite, trimming and/or shaping including cutting for the sake of avoiding damage to hedgers/trees, taking measures to ensure survival of the Plantation, removal and replacement of dead plants, supporting plant/tree with bamboo or arranging other supports including tree guards, and generally to do anything incidental, ancillary or subservient to the principal object of Plantation of Trees and Post-Plantation Maintenance. Questions Asked by Applicant: Seeking the present advance ruling no. GUJ/GAAR/R/2025/63, 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, is liable to pay tax on the charitable activity of plantation and maintenance of trees? If yes, then to what extent and at what rate?"

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Answers Given by AAR Gujarat: Answer 1: Yes, as being a Charitable Institution, entry no. 1 of Notification No. 12/2017, dated June 28, 2017, as amended, will apply to the charitable activity of plantation and maintenance of "Plants," "Trees," "Shrubs," and/or "Hedges" by the applicant, duly recognized under Section 12AB of the Income-tax Act, 1961, for the preservation of the environment. Answer 2: No, the applicant, being a charitable trust duly recognised under Section 12AA of the Income-tax Act, 1961, is not liable to pay any tax on the charitable activity of plantation and maintenance of trees. The applicant will be eligible for exemption from payment of GST under Sl. No. 1 of Notification No. 12/2017 dated June 28, 2017, as amended.