Order Date: 30 May 2022

Key Pointers:

• The applicant, 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 water channel meant for fish/prawn farming. 
• The applicant questioned before the Authorities on the applicability of GST on renting of Land. Whether the activity of Fish/ Prawn Farming is covered under services relating to rearing all life forms of animals- by way of renting or leasing of vacant land, and eligible for GST exemption as per Sl.No.54 of Notification No.12/2017 central tax (Rate) dt: 24.06.2017?
• The authorities observed that in case of fish/prawn farming, any of the processes as listed in the si. 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.
• The Authorities held that the applicant is ineligible for exemption as per sr.No.54 of notification No.12/2017 Central Tax (Rate) dt 24.O6.2017 and taxable at the rate of 18% under sl. No. 16 of HSN Code 9972.