GST on treated water

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..... GST on treated water
Query (Issue) Started By: - Kaustubh Karandikar Dated:- 23-4-2019 Last Reply Date:- 27-4-2019 Goods and Services Tax - GST
Got 3 Replies
GST
XYZ will be processing MIDC Water through Reverse Osmosis process to remove dissolved salts. The said processed water will be sold to various factories for industrial use. Is XYZ liable to pay GST on this processed water? If .....

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..... yes what is the HSN code and percentage of GST? Reply By KASTURI SETHI: The Reply: Dear Sir, Treatment of water or processing of water does not amount to manufacture as no new different/new product is emerged. In pre-GST era it was classified under BAS. Now it may be under Business Support service attracting 18% rate of tax. Pl go through the following case law:- 2013 (30) S.T.R. 506 (Tri. - D .....

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..... el.) = 2014 (8) TMI 620 - CESTAT NEW DELHI UTILITY POWERTECH LTD. Versus COMMISSIONER OF CENTRAL EXCISE, ALLAHABAD Reply By Alkesh Jani: The Reply: Dear Sir, Para 6.2 and 6.3 of Circular No. 52/2018 dated 09.08.2018, is reproduced below for ready reference 6.2 Attention is drawn to the entry at S. No. 99 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, by virtue of which water [ .....

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..... other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container] falling under HS code 2201 attracts NIL rate of GST. 6.3 Accordingly, supply of water, other than those excluded from S. No. 99 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, would attract GST at "NIL" rate. Therefore, it is clarified that supply of drin .....

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..... king water for public purposes, if it is not supplied in a sealed container, is exempt from GST. I hope this may be of help in the present discussion. Thanks, With Regards, Reply By KASTURI SETHI: The Reply: Sh.Alkesh Jani Ji, You are right on your view point but here is a question of service. Processing water or treating water does not amount to manufacture as CESTAT judgement mentioned abo .....

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..... ve. Processing or treating water is service as mentioned at serial no.3(iii) (c) in notification no.11/17-CT(Rate) dated 28.6.17 as amended from time to time. It is part of composite supply made to Govt. attracting GST@ 12%.
Discussion Forum - Knowledge Sharing .....

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