Tree Plantation & Maintenance In Non-Forest Areas By Charitable Trust Exempt From GST: Gujarat AAR
Pranav B Prem
The Gujarat Authority for Advance Ruling (AAR) has held that the activity of tree plantation and maintenance carried out by a charitable trust in non-forest areas such as barren lands, roadsides, lane dividers, private lands and other available spaces is exempt from Goods and Services Tax (GST), as it qualifies as a charitable activity relating to preservation of the environment.
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A Bench comprising Vishal Malani (Member – Central Tax) and Sushma Vora (Member – State Tax) ruled that the services undertaken by the applicant are squarely covered under Entry No. 1 of Notification No. 12/2017–Central Tax (Rate), which grants GST exemption to services provided by entities registered under Section 12AA/12AB of the Income Tax Act by way of charitable activities.
The applicant, a sister arm of Manav Charitable Trust, was selected under the “Harit Van Path Yojna” initiative of the Gujarat Forest Department for the year 2025–26. Under the project, the applicant was entrusted with plantation and maintenance of 7,62,712 trees, with the total project value pegged at approximately ₹113.65 crore. The work involved planting trees in non-forest areas such as unused barren lands, roadsides, road dividers, private lands and other available patches to enhance tree cover and provide ecological and environmental protection.
The applicant sought an advance ruling on whether plantation and maintenance of trees undertaken by a charitable organisation registered under Sections 12AA/12AB of the Income Tax Act for charitable purposes would be exempt from GST. It was submitted that the activities were undertaken solely with the objective of environmental preservation and without any commercial intent.
While examining the issue, the Gujarat AAR referred to the National Forest Policy, 1988, which emphasises preservation, expansion and restoration of tree cover through massive afforestation and social forestry programmes. The Authority noted that one of the key strategies under the policy is to encourage tree plantation along roads, railway lines, rivers, canals and other unutilised lands under State, institutional, corporate or private ownership, in order to check erosion, desertification and to improve the microclimate.
The Authority also took note of the objectives of the Harit Van Path Yojna, which aims to increase tree cover through plantation in non-forest areas and aligns with the broader goal of environmental protection. It observed that the applicant’s activities of planting and maintaining trees on roadsides, barren lands and other non-forest areas directly contribute to preservation of the environment.
On a perusal of the Memorandum of Association of the applicant, the AAR found that one of its principal objectives was to promote a clean and healthy environment through tree plantation and afforestation programmes. The Authority held that increasing tree cover through afforestation and social forestry clearly falls within the ambit of “charitable activities” as defined under the exemption notification.
The Gujarat AAR further relied on an earlier advance ruling rendered in Vikas Centre for Development (2023), where mangrove plantation activities were held to be exempt from GST under the same notification, being activities aimed at preservation of the environment. In view of the above, the Authority concluded that plantation and maintenance of trees carried out by the applicant in non-forest areas qualifies as “preservation of environment”, which is a recognised charitable activity under Entry No. 1 of Notification No. 12/2017. Accordingly, the services provided by the applicant were held to be exempt from GST.
Cause Title: Sadbhavna Seva Foundation , Sadbhavna Trust
