9911796707
TMI Blog2022 (7) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the APGST Act. 2. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s. Sri Vinayaka Hatcheries (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: The applicant i.e., M/s. Sri Vinayak Hatcheries had executed an agreement with Grobest Feeds Corporation (India) Private Limited for the purpose of taking a vacant land with a wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 1. As per SI.No.54 of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017; under Heading 9986 - Services relating to rearing of all life forms of animals, by way of renting of vacant land with or without a structure incidental to its use are exempted from GST. As per the said entry, exemption is available for services relating to cultivation and rearing of all forms of animals. The services can be by way of; (i) agricultural operations; (ii) supply of farm labour; (iii) process carries out at an agricultural farm; (iv) renting or leasing of agro machinery or vacant land; (v) loading and unloading of agricultural produce; (vi) agricultural extension services and (vii) services by any agricultural produce ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not only the soil or earth, but also things of permanent nature affixed thereto or found therein, whether by nature as water, trees, grass, herbage, other natural or perennial products, growing crops or trees, mineral under the surface, or by hand of man buildings, fixtures, fences bridges as well as works constructed for use of water, such as dikes, canals etc. It is thus clear that 'ponds' fall within the meaning of term `land'. Thus, all the conditions stipulated in SI.No 54 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 are satisfied and the lease of vacant land for fish/ prawn farming qualifies for exemption as per the said entry. The applicant further submits that the words such as "rearing of all lif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the said notification reads as follows; "SI.No.54. Heading - 9986 - Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of-- (a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing; (b) supply of farm labour; (c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential character ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l.no. 54 (a) is carried out on that vacant land. Furthermore, in case of fish/prawn farming, any of the processes as listed in the sl.no.54 (c) of the notification such as 'tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such other operations which do not alter the essential characteristics of agricultural produce' are not carried out on the vacant land. Hence, fish/prawn farming is not covered under services to agriculture as enumerated under SI.No.54 of the notification. Secondarily, we examine the fact that whether the land leased by the applicant is covered under services relating to cultivation of plants and rearing of all life f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion as such. The activity of lease/license to occupy land is supply of service as per Schedule II of CGST Act, 2017 as presented below. SCHEDULE II [See Section 7 of the CGST Act] 1) "Activities or Transactions" to be treated as Supply of Goods or Supply of Services 2) Land and Building (a) any lease, tenancy, easement, licence to occupy land is a supply of services; (b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services." This would lead to the conclusion that the lease of vacant land would obviously be covered under heading 9972 vide notification no 11/2017 central tax (Rate) dt: 28.06.2017 and is taxable. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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