Renting or Leasing of vacant land used for fish farming is eligible for GST exemption

Last updated: 18 August 2021

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Quick Summary

The Kerala Authority for Advance Ruling has determined that the renting or leasing of vacant land specifically for fish farming is eligible for Goods and Services Tax (GST) exemption. This ruling applies to arrangements where land, such as water channels, is leased out for activities like fish and crab farming, and the lessee pays an agreed amount for its use.

Court :
KERALA AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX DEPARTMENT

Brief :
The applicant is a Local Self Government Institution and is engaged among other activities in leasing of wet land for fish farming. The applicant has allotted some wet land, i.e., water channel (paruthithodu chaal in Chellanam) on lease.

Citation :
KER/100/2021

KERALA AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX DEPARTMENT TAX TOWER, THIRUVANANTHAPURAM

BEFORE THE AUTHORITY OF: Shri. Sivaprasad .S, IRS & : Shri. Senil A.K. Rajan.

The applicant is a Local Self Government Institution and is engaged among other activities in leasing of wet land for fish farming. The applicant has allotted some wet land, i.e., water channel (paruthithodu chaal in Chellanam) on lease. The land is used for fish and crab farming. The person who has taken the wet land on auction has to pay the agreed auction amount.

2. At the outset, the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act)

Please find attached the enclosed file for the full judgement

FAQ :

Yes, the renting or leasing of vacant land used for fish farming is eligible for GST exemption according to the Kerala Authority for Advance Ruling.

The exemption applies to vacant land, including wet lands or water channels, that is used for fish and crab farming.

The ruling was made by the Kerala Authority for Advance Ruling, Goods and Services Tax Department.

Yes, if the land is leased for fish and crab farming, the arrangement is eligible for GST exemption, regardless of whether it was obtained through an auction.