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2020 (3) TMI 1043 - AAR - GSTExemption from GST - supply of purified water to public in empty unsealed cans - Entry No.99 of the Notification No. 2/2017 - Central Tax (Rate) dated 28th June, 2017 - HELD THAT:- On perusal of the aforesaid Circular No. 52/ 26/2018 dated 09th August 2018, and entry No. 99 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 and the nature of the activity carried out by the applicant, it was observed that applicant supplying purified drinking water to the general public at reasonable price after removing all the physical, chemical and biological impurities in unsealed containers which are brought by the public themselves. In the above said circular it is clearly mentioned that other than those excluded from the SI. No. 99 of notification No. 2/2017-Central Tax (Rate) dated 28.06-2017, would attract GST at “NIL” rate. In the instant case, applicant supplying purified drinking water to urban under-served people across various metro cities by installing the community water system. In the process applicant removes suspended solids, organic matter, chlorine, obnoxious taste and smell from raw water and then sent to Reverse Osmosis membranes to remove total dissolved solids, bacteria and pathogens. During this process raw water converted into purified drinking water and this purified drinking water is supplied to the public - the word ‘and’ used before the ‘water sold in sealed container’ in the Sl. No. 99 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 is disjunctive nature and lays down that Water sold in a sealed container’ is the another type of water excluded from the said entry along with the aerated water, mineral water, purified water, distilled water, medicinal water, ionic water, battery water, de-mineralized water. Therefore, supply of purified water whether in sealed container or unsealed container not entitled for GST exemption as the purified water excluded from the Sl. No. 99 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017. Thus, supplying of purified drinking water to the general public in an unsealed container is not entitled for exempt from GST.
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