Classification of service— In the instant case, the applicant is stated to be engaged in the business of cultivation, planting and nurturing of fruit trees like citrus lemon, pomegranate etc in marginalised areas and mangrove seeds and seedlings in coastal areas across different states of the country with the sole aim of environmental protection against climate change.

The applicant has raised following question for advance ruling—

1) What would be the SAC Code & GST Rate for the outward supply made by the applicant, in case of fruit trees being cultivated and nurtured at marginalised communities?

2) What would be the SAC Code & GST Rate for the outward supply made by the applicant, in case of mangroves being cultivated and nurtured at coastal communities?

The applicant has entered into contracts with internationally acclaimed environmental organizations for cultivation, planting and nurturing of fruit trees like citrus, lemon, pomegranate etc in marginalised areas and also for plantation of mangrove seeds and seedlings in coastal areas across different states of the country with the sole aim of environmental protection against climate change. According to the applicant, while planting and nurturing of different fruit trees aims to create sustainable livelihoods and provide nutritious food to the families and community residing in the nearby planting activities, the sole object of plantation of mangrove seeds is to enhance biodiversity and re-establish ecosystem function to protect the islands and the populace from erosion.

The applicant is of the opinion that both the aforesaid activities is covered under the term “Agricultural Services” as described in Notification No. 11/2017 – Central Tax (Rate) under Serial No 24 with Heading 9986 and read as “Support Service to agriculture, forestry, etc.” having NIL rate of GST.

Held that— Supply of services for cultivation, planting and nurturing of fruit trees shall be covered under serial number 24 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 having SAC 9986 and therefore shall attract Nil rate of tax.

Supply of services for plantation of mangrove seeds and seedlings in coastal areas shall be covered under serial number 32 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 having SAC 9994 and therefore shall attract tax @ 18% (CGST @ 9% + WBGST @ 9% or IGST @ 18%).