2018 (4) TMI 581 – AUTHORITY FOR ADVANCE RULING – KERALA – 2018 (12) G. S. T. L. 386 (A. A. R. – GST), [2018] 2 GSTL (AAR) 50 (AAR) – Rate of tax – standing rubber trees – applicant contends that the tax liability of timber and firewood/fuel wood is explained under HSN code 4401 and there is no direction to collect GST for standing trees of rubber trees which fall under HSN code 06. But, the State Farming Corporation is demanding 18% on live rubber trees – Held that: – under the contract of supply, growing crops, i.e., rubber trees are agreed to be severed before supply and hence, comes under the definition of 'goods'. Thus, standing rubber trees no longer remain as such. Therefore, it can only be treated as 'wood in rough form'.
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n Kerala. 2. The applicant has submitted that he had participated in the e-auction for cutting 6696 standing rubber trees from the State Farming Corporation Ltd., Vettithitta, a PSU under Central Govt. The applicant contends that the tax liability of timber and firewood/fuel wood is explained under HSN code 4401 and there is no direction to collect GST for standing trees of rubber trees which fall under HSN code 06. But, the State Farming Corporation is demanding 18% on live rubber trees. The tax liability of GST coming to effect only when the standing trees are cut down and separated into timber/wood and fuel wood/fire wood as the case may be. 3. The applicant further contends that the rubber trees are soft wood and cannot be used for cons
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-12-2017 hence as per the W.A.No.245/2018 of Hon 'ble High Court for clarifying the GST rates. (2) Both taxable rate of CGST and SGST for Standing Rubber Trees and Firewood. " 6. The authorised representative of the applicant was heard in the matter and the contentions raised were examined. 7. As per the terms and conditions in the e-tender of State Farming Corporation, the contractor should cut and remove the trees from the estate. Further, no other trees or fuel wood in the estate are allowed to be cut down or removed. As per the definition of goods in Section 2(52) of CGST Act, 2017 , "goods" means every kind of movable property other than money and securities but includes actionable claim, growing crops. grass and thi
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