No GST on drinking water supplied to customers through tanker lorries: AAR

An application was submitted by M/s. Hisham Transport before the Advance Ruling Authority to get clarity on whether GST should be charged on the supply of potable water delivered through tanker lorries. The authority who are examining this matter are Shri Jomy Jacob, IRS, and Shri Mansur M.I. The applicant, M/s. Hisham Transport is registered under GST with the GSTIN 32AADFH0003K123 and ARN number AD320124002067V. The business address is 15/332B, Mundampalam, Kangarappady, Ernakulam, Kerala – 682021.

For this matter, a personal hearing was held on April 2, 2025 and the authorised representative for the applicant was Shri M.A. Moideen, Chartered Accountant.

Question: The first question includes whether the supply of drinking water through tanker lorries with capacities which ranges from 2,000 kiloliters to 30,000 kiloliters according to customer orders is exempt from GST under Notification No. 2/2017 – Central Tax (Rate), dated 28.06.2017, and Kerala GST Notification SRO No. 361/2017, as amended from time to time.

Ruling: The ruling given was Yes. The supply of drinking water through tanker lorries is exempt from GST. It comes under the Entry No. 99 of the mentioned notification and therefore, no GST is applicable on such supplies.

Question 2: The second question was if the supply of water is not considered exempt what GST rate would apply and under which entry it would be taxed.

Ruling: As the supply of drinking water through tankers is already confirmed as exempt then there is no GST to be charged and the second question does not arise.

The Advance Ruling Authority clarified that M/s. Hisham Transport does not need to charge GST on the supply of potable water through tankers, as it is fully exempt under current GST rules.