Ahamdabad, 23.12.2025 : The Gujarat Authority for Advance Ruling (AAR) has ruled that tree plantation and maintenance activities carried out by a charitable trust in non-forest areas are exempt from Goods and Services Tax (GST), holding that such work qualifies as a charitable activity aimed at preservation of the environment.
The ruling was delivered by a Bench comprising Vishal Malani, Member (Central Tax), and Sushma Vora, Member (State Tax). The Authority held that the services fall squarely within Entry No. 1 of Notification No. 12/2017–Central Tax (Rate), which grants GST exemption to services provided by entities registered under Sections 12AA or 12AB of the Income Tax Act when undertaken as charitable activities.
The applicant, a sister concern of Manav Charitable Trust, had been selected under the “Harit Van Path Yojna” of the Gujarat Forest Department for the year 2025–26. Under the scheme, the applicant was entrusted with the plantation and maintenance of 7,62,712 trees across non-forest areas including barren lands, roadsides, lane dividers, private lands and other available spaces. The total value of the project was approximately ₹113.65 crore.
Seeking clarity on GST liability, the applicant approached the AAR to determine whether plantation and maintenance activities undertaken for charitable purposes, without any commercial intent, would qualify for exemption. It was submitted that the sole objective of the project was environmental protection and enhancement of green cover.
While examining the issue, the Authority referred to the National Forest Policy, 1988, which stresses the need for preservation, expansion and restoration of tree cover through afforestation and social forestry programmes. The policy specifically encourages plantation along roads, canals, railway lines and other unused lands under public or private ownership to prevent erosion, desertification and to improve local climate conditions.
The AAR also considered the objectives of the Harit Van Path Yojna, noting that the scheme is aimed at increasing tree cover in non-forest areas as part of broader environmental conservation efforts. It observed that plantation and maintenance of trees on roadsides, barren lands and similar spaces directly contribute to environmental preservation.
On reviewing the applicant’s Memorandum of Association, the Authority found that promoting a clean and healthy environment through tree plantation and afforestation was one of its core objectives. The AAR held that increasing green cover through such activities clearly falls within the definition of “charitable activities” under the exemption notification.
The Authority further relied on its earlier ruling in Vikas Centre for Development (2023), where mangrove plantation activities were held to be exempt from GST as they related to preservation of the environment. Applying the same reasoning, the AAR concluded that plantation and maintenance of trees in non-forest areas qualify as environmental preservation and are therefore exempt from GST under Entry No. 1 of Notification No. 12/2017.
