The Karnataka Authority for Advance Rulings (AAR) has ruled that training farmers through scientific research and knowledge is covered under “agricultural extension services” and can avail GST exemption.
The applicant, M/S. Avani Infosoft Private Limited a registered person under GST Law, entered into a service contract, on 01.08.2021, with M/S Isha Outreach, a public charitable trust, Coimbatore to provide agricultural extension services for tree-based agriculture to the farmers of the Cauvery River Basin.
The applicant will appoint Mara Mitras who are Agriculture Extension Workers (AEW) for providing agricultural extension services, including but not limited to farmer’s education and training about agroforestry by applying scientific research and knowledge.
It was observed that the applicant through their mara mitras not only educate and train farmers about agroforestry through scientific research and knowledge but are also involved in hand holding the farmers from recording demand for saplings, picking up the samplings from nurseries to their plantation and also monitoring post plantation survival.
Under Explanation 2(C) appended to Notification No.9/2017-Integrated Tax (Rate) dated 28.06.2017, “agricultural extension” was defined to mean the application of scientific research and knowledge to agricultural practices through fanner education or training. The Authority observed that the applicant, through mara mitras, provides education and training to the farmers for the cultivation of plants/trees, by applying scientific research and knowledge.
Dr M.P. Ravi Prasad, Member (State) and Sri. T. Kiran Reddy, Member (Central) observed that all the other activities of the applicant carried out through mara mitras from the selection of saplings to assisting in transportation & planting, to monitoring the survival of plants are related to agricultural extension activity and are exempted in terms of entry no.57 of Notification No.9/2017Integrated Tax (Rate) dated 28.06.2017.
The applicant was represented by Sri. Mallikarjun Patil & Authorised Representative.
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