Classification —Rate of GST—In the instant application question before authority is that Whether quit rent / lease rent paid to Kerala Government on the land used for agricultural purpose (Coffee Plantation) be classified under HSN 9986 or HSN 9973.

Held that—The vacant land was given by erstwhile Cochin State to the applicant for cultivation on lease rent. Accordingly the petitioner converted the vacant land to Coffee Plantation. Therefore the lease rent collected by Government through Forest Department is exempted from GST vide Heading 9986 of Notification No.12/2017- Central Tax (Rate) / SRO.No.371/2017. The lease rent received in relation to agricultural activities was also exempted under Service Tax regime also.Ruling—The quit rent / lease rent paid to Kerala Government on the land used for agricultural purpose i.e., Coffee Plantation be classified under HSN 9986 and eligible for exemption under GST. [ M/S. THE COCHIN PLANTATIONS LTD.] [AUTHORITY FOR ADVANCE RULINGS, KERALA]