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TMI Blog2020 (8) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... d 12.03.2019 with the Secretary, Chellanam Grama Panchayat. The Grama Panchayat informed the applicant that the applicant is also liable to pay GST at the rate of 18% of the bid amount along with the bid amount as the auction of water channel is not covered by the exemption under Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017. 2. The applicant has sought advance ruling on the following; Whether lease rent charged by the municipality for land i.e., water channel used for fish farming falls within the meaning of "services relating to rearing of all life forms of animals - by way of renting or leasing of vacant land" eligible for GST exemption as per Sl.No.54 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing or leasing of agro machinery or vacant land; (v) loading and unloading of agricultural produce; (vi) agricultural extension services and (vii) services by any agricultural produce marketing committee. Therefore, the conditions to be satisfied for exemption under the said entry is that the activity carried out should be cultivation or rearing of animals or agricultural produce and the services provided shall conform to any of the descriptions enumerated therein. 5. The term "rearing" means bring up and care for until they are fully grown. They take care of the fish / crab from the point they are eggs until they are fully grown up by providing them with feed and also taking care in all possible ways. The next condition is that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s well as works constructed for use of water, such as dikes, canals etc. It is therefore, clear that all the conditions stipulated in Sl No.54 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 is satisfied and hence the rent paid to the Grama Panchayat is exempt from GST. 6. The matter was examined in detail. The Chellanam Grama Panchayat has confirmed the bid for Paruthithodu water channel fish farming to the applicant. On perusal of the documents submitted by the applicant including the copy of the agreement dated 12.03.2019 entered into between the applicant and the Secretary of Chellanam Grama Panchayat it is evident that the nature of the transaction is renting 1 lease of water channel for fish farming and hence the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Board or services provided by a commission agent for sale or purchase of agricultural produce; (h) services by way of fumigation in a warehouse of agricultural produce. - Nil" 7. On a plain reading of the above entry, it is clear that the services relating to cultivation of plants and rearing of all life forms of animals by way of renting or leasing of vacant land with or without structures is exempted under the entry. In the instant case, there is no doubt that the fish and crabs being reared by the applicant in the water channel taken on rent / lease are animals and the service of renting / leasing of the water channel has been availed by the applicant for the rearing of the animals. Therefore, the activity of renting 1leasing the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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