Order Date – 30 December 2022

Facts –

• The Applicant, M/s. Vikas Centre For Development, is a charitable trust registered under Section 12AA of the Income Tax Act, 1961 carrying out charitable activities.
• The applicant has entered into an agreement to carry out a Pilot Project designed to explore various plantation densities from 2500 up to 10,000 hectare including plantation of mangroves, which are relating to "preservation of environment".

Issue – 

• Whether the activity of Afforestation, which includes the plantation of mangroves is exempted from GST under Sr. No.1 of Notification No.12/2017-CT (Rate)?

Order –

• The AAR observed from the records the benefits of plantation of Mangroves along coastal and looking to the impact of plantation of mangrove on environment, social and economic, thus the activities of plantation of mangrove carried out by the applicant are covered under point (iv) of Charitable Activity under clause 2 (r) of Notification No. 12/2017-CT (R) dated 28-6-2017 as amended.
• It was observed that the applicant does not have any profit motive and not earned any Income due to such activities. The entire fund received in the year 2022-23 would be utilized for the project of plantation only. Therefore, the applicant activity do not covered under the Supply as defined under Section 7 of CGST Act 2017.
• The activity of Afforestation carried out by the applicant as charitable organization is exempted from GST under Sr. No.1 of Notification No.12/2017-CT (Rate) dated 28-6-2017 if organization is registered under (i) Section 12AA of Income Tax Act (ii) Public Charitable Trust under Bombay Public Trusts Act, 1950 (iii) Charity Commissioner :Trust Registration no. E3183, Ahmedabad dated 0410111978.
• The applicant is not required to be get registered under GST if fulfills all the conditions as above