Lease rent paid to Kerala Government on the land used for agricultural purpose is exempt from GST : AAR

Lease rent paid to Kerala Government on the land used for agricultural purpose is exempt from GST : AAR | Kerala Authority of advance ruling

CA Deepak Gupta

Nov 3, 2018

Last update on Nov 3, 2018

Lease rent paid to Kerala Government on the land used for agricultural purpose is exempt from GST : AAR | Kerala Authority of advance ruling in matter ofM/s The Cochin Plantations Ltd Below is the extract of the ruling In the instant case vacant land was given by erstwhile Cochin State to the applicant for cultivation on lease rent. Accordingly the petitioner converted the vacant land to Coffee Plantation. Therefore the lease rent collected by Government through Forest Department is exempted from GST vide Heading 9986 of Notification No.12/2017- Central Tax (Rate) I SRO.No.371/2017. The lease rent received in relation to agricultural activities was also exempted under Service Tax regime also. In view of the observations stated above, the following rulings are issued: The quit rent / lease rent paid to Kerala Government on the land used for agricultural purpose i.e., Coffee Plantation be classified under HSN 9986 and eligible for exemption under GST.

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CA Deepak Gupta

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