GST applicable on supply of purified water to public in empty unsealed cans

Advance Ruling has been made by The Authority for advance rulings Karnataka. This Ruling was made in matter of M/s Water Health India Private Limited.

Facts of the Case

Applicant is enaged in the business of supplying purified water in the following types:

a) in unsealed form by filling customer empty cans (i.e., supply of purified water in a can which is being brought by the customer)

b) in 20 litre unsealed cans; and

c) Through piped network to establishments.

The applicant has entered into an agreement (MOU) with local panchayats/ municipalities by signing memorandum of understanding for the supply of purified water to the general public. The relevant terms and conditions of the said agreement are listed below:

a) To supply purified water to urban under-served people across various metro cities by installing community water treatment plant at economical price.

b) CWS shall be designed to treat 21,000/44,000/65,000 litres of water per day using filtration process for removal of physical, chemical impurities and microbial contamination.

GST applicable on supply of purified water to public in empty unsealed cans

c) The applicant undertakes the water treatment process through CWS is as under :

• Raw water from source (well/pond/bore well/ others) is collected into the raw water tank and is then pumped to CWS for removal of suspended solids, organic matter, chlorine, obnoxious taste and smell; and

• The purified water is further sent to Reverse Osmosis membranes to remove total dissolved solids, bacteria and pathogens and then the same is sent to purified water storage tank;

d) Purified water shall meet the drinking water standards of IS 10500 as well as WHO guidelines;

e) The applicant is maintaining the TDS level of purified water at 109 mg/1 which is in between the desired TDS level as per IS 10500:2012 i.e.,100- 500 mg/1;

Consideration for Supply

The applicant supplied this purified water to the public at the rate of Rs. 8/- for 20 litres water cans or such amount as is reasonable. Further agreement also enables the applicant to recover capital and operational expenses in case such amount collected falls short to recover its capital and operational expenditure. This may be subjected to revision with prior approval of concerned person with whom the applicant has an agreement.

Question

Whether supply of purified water to public in empty unsealed cans is exempt under GST law.

Ruling

The supply of purified drinking water to public in empty unsealed cans is not entitled exemption from GST.

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