Classification of service— In the instant case, the applicant 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 approached the Authority seeking advance ruling on the applicability of GST on renting of Land.

Questions raised before the authority:

The applicant seek Advance Ruling on the applicability of GST on renting of Land and 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 SI.No.54 of notification No.12/2017 central tax (Rate) dt: 28.06.2017 and corresponding notification under Andhra Pradesh GST.

The applicant is engaged in the activity of fish/prawn farming and the issue of contention is the applicability of GST on renting of land and whether the above activity is covered under “services relating to rearing of all life forms of animals, by way of renting or leasing of vacant land” and eligible for exemption contained in the entry at Si. No. 54 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. 

 Fish farming is not an agricultural activity as no basic agricultural operation 'directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing', as enumerated in sl.no. 54 (a) is carried out on that vacant land. Furthermore, in case of fish/prawn farming, any of the processes as listed in the sl.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.

Held that— Applicant is ineligible for exemption as per SI.No.54 of notification No.12/2017-Central tax (Rate) dt: 28.06.2017 and taxable at the rate of 18% under sl. No. 16 of HSN Code 9972 of notification No.11/2017-Central tax (Rate) dt: 28.06.2017.