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GST Rate of Contract Service - Grass Cutting in the Forest

24 July 2018

Hello Sir/ Madam

I would like to know the GST rate for government contract service . It is grass cutting work in the Forest to prevent fire . The Govt.Forest Dept. Says, it is Nil rate service with explanation ( Heading "9986" ... Forestry service ).

Is it Nil rated service ?.

please give me a clear solution to settle this issue .

Thanks & Regards
Shinoj Davis

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1 Replies

CA Shivam Arora (Chartered Accountant) (2414 Points)
Replied 24 July 2018

SAC-9986

Rate-Nil

(i) Support services to agriculture, forestry, fishing, animal husbandry.
Explanation. – "Support services to agriculture, forestry, fishing, animal husbandry" mean -
(i) Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of—
(a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing;
(b) supply of farm labour;
(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
(d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
(e) loading, unloading, packing, storage or warehousing of agricultural produce;
(f) agricultural extension services;
(g) services by any Agricultural Produce Marketing Committee 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.
(ii) Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables.
(iii) Carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce.