Afforestation of plants carried out by charitable trust is exempted from the levy of GST

Last updated: 06 January 2023

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The Gujarat Authority for Advance Ruling (AAR) has ruled that afforestation activities, including mangrove plantation, carried out by a charitable trust are considered charitable activities and are exempt from Goods and Services Tax (GST). The AAR determined that these environmental preservation efforts do not constitute a business activity and are not classified as 'supply' under GST law, meaning the trust is not liable for GST registration.

Court :
AAR, Gujarat

Brief :
The AAR, Gujarat in the matter of M/s Vikas Centre for Development [Advance Ruling No. GUJ/GAAR/R/2022/50 dated December 30, 2022] has ruled that activity of plantation is to be considered as charitable activity carried on by a Charitable Trust and is exempted from the levy of GST under Sr. No. 1 of Notification No. 12/2017- Central tax (Rate) dated June 28, 2017 ("the Services Exemption Notification"). Further, the activity of the Charitable Trust is not covered under the ambit of 'supply', hence, not liable to register under GST.

Citation :
Advance Ruling No. GUJ/GAAR/R/2022/50 dated December 30, 2022

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