GST Exemption for Tree Plantation by Charitable Trusts
The Gujarat Authority for Advance Ruling confirmed that tree plantation and maintenance by registered charitable trusts are exempt from GST.
- Ruling
- GUJ/GAAR/R/2025/63 dated 23/12/2025
- Dated
- 23 Dec 2025
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Manav Seva Charitable Trust asked if tree plantation services are GST exempt.
- The Authority ruled these activities qualify as charitable environmental preservation.
- Services are exempt under Entry No. 1 of Notification No. 12/2017-CT(R).
In short
A charitable trust asked the Gujarat Authority for Advance Ruling (GAAR) if its tree plantation and maintenance work for the government is subject to Goods and Services Tax (GST). The authority examined whether these environmental projects qualify as charitable activities under tax law. It concluded that because the trust is registered under the Income-tax Act, its environmental work is exempt from GST.
What has changed
How it worked before
It was previously unclear if specific environmental maintenance contracts performed by charitable trusts for government bodies qualified for the broad GST exemption granted to charitable activities.
What has changed
The ruling confirms that tree plantation and maintenance are recognized as charitable activities for environmental preservation. In practice, this means trusts performing such work do not need to charge GST on these services, provided they hold valid registration under the Income-tax Act.
Who this affects
Charitable trusts and non-profit organizations engaged in environmental conservation or government-contracted plantation projects.
An example
A different charitable trust in Gujarat is hired by a local municipality to maintain a public park and plant trees. They wonder if they should charge GST on the service fee paid by the municipality. Based on this ruling, they can argue that their work is an exempt charitable activity for environmental preservation. They should document their 12AB registration and the nature of the work to support this position.
What you should do
If your trust performs similar work, review your registration status and the nature of your contracts. Remember that an Advance Ruling only legally binds the specific trust that asked for it and its local tax office. You should consult with your tax advisor to see if this logic applies to your specific project before stopping GST collection.
If you do nothing
If you assume this ruling applies to you and stop charging GST without confirming your specific facts, you risk a tax demand later. If a tax officer disagrees with your interpretation, you may be liable for the unpaid tax, interest, and potential penalties. Always seek a professional opinion tailored to your specific contract.
The terms explained
- Advance Ruling
- A formal decision provided by tax authorities to a business to clarify how tax laws apply to a specific proposed or ongoing transaction.
- Charitable Activity
- Specific services performed by a registered trust that are exempt from GST under government notifications, often related to public welfare or environmental protection.
- Notification No. 12/2017-CT(R)
- A central government order that lists various services which are exempt from paying Goods and Services Tax.
The ruling in detail
Authority for Advance Ruling
MANAV SEVA CHERITABLE TRUST
GUJ/GAAR/R/2025/63 dated 23/12/2025 · Gujarat
Questions before the authority
- Whether, in the facts and circumstances of the case, the entry no. 1 of Notification No. 12/2017 (as amended from time to time) applies to the charitable activity of plantation and maintenance of tree (more particularly described in the Statement of Relevant Facts), by the applicant being a Charitable Institution, duly recognized u/s. 12AA of the Income-tax Act, 1961 for Preservation of Environment?
- Whether, in the facts and circumstances of the case, the applicant being a Charitable Institution, duly recognized u/s. 12AA of the Income-tax Act, 1961, is liable to pay tax on charitable activity of plantation and maintenance of tree? If yes, then to what extent and at what rate?
Facts
The applicant is a registered charitable trust engaged in tree plantation and maintenance activities, including projects under the 'Harit Van Path Yojna' on a PPP basis for various government bodies. They sought a ruling on whether these activities, which involve planting and maintaining trees along roads and vacant lands, qualify as charitable activities under GST law. The applicant is registered under Section 12AB of the Income-tax Act, 1961.
Ruling
| Question | What the authority ruled |
|---|---|
| Applicability of Entry 1 of Notification 12/2017 | Yes Applicable to charitable activities of plantation and maintenance of trees by a registered charitable institution |
| Liability to pay tax | Not liable Eligible for exemption from payment of GST under Notification No. 12/2017 |
The Authority ruled that the applicant's activities of tree plantation and maintenance qualify as charitable activities related to the preservation of the environment. Consequently, these services are exempt from GST under the relevant notification. The applicant is not liable to pay tax on these specific activities.
Reasoning
The Authority determined that the applicant is a registered charitable institution under the Income-tax Act. It held that tree plantation and maintenance for environmental preservation fall squarely within the definition of 'charitable activities' as per the notification. Relying on the **National Forest Policy** and previous precedents, the Authority concluded that the activity serves the objective of environmental stability. Therefore, the services are covered under **Entry No. 1 of Notification No. 12/2017-CT(R)**, which grants a **Nil rate of tax**.
Provisions relied on
- Section 97(2) of CGST/GGST Act, 2017
- Notification No. 12/2017-CT(R) dated 28.06.2017
- Section 12AA/12AB of the Income-tax Act, 1961
For the practitioner
This ruling provides significant relief to charitable trusts engaged in environmental projects, confirming that tree plantation and maintenance services are **exempt from GST**. It reinforces that such activities, when performed by a registered charitable entity, align with the definition of charitable activities under the GST notification. Practitioners can use this to support claims for **GST exemption** on similar government-contracted environmental work.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/4-manav_seva_trust.pdf
Legibility of the scan, as read: high.
Prepared 12-10-2026.
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