TMI Blog2021 (8) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... ant case is purified water' , which is purified through Reverse Osmosis (RO) process in the plants established by the applicant and thus it is covered under exclusion of the exemption entry and is liable to tax. As per CBIC Circular No.52/26/2018-GST dated 09.08.2018, whether supply of drinking water in unpacked / unsealed form through dispensers / tankers, to general public is exempt? - HELD THAT:- As admitted by the applicant in the description of the detailed procedure involved in the purification of water at the treatment plants, it leaves no further doubt that the supplies are nothing but of purified water. Consequently, we come to the conclusion that the purified water supplies made by the applicant are not eligible for exemption either as per SI.No 99 of Notification No. 02/2017- Central Tax (Rate) dated 28.06.2017 or by the clarificatory circular No.52/26/2018-GST dated 09.08.2018. Whether services extended to the public through mobile tankers would attract exemption under GST or not? - HELD THAT:- Prima facie, there are two supplies involved in the instant case; wherein one is 'the supply of purified drinking water' and the other being 'the supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdable cost for the under privileged people in villages in the state of Andhra Pradesh where clean and potable drinking water is not available. 3.2 The applicant proposes to draw water from the local water source (Open Well/Bore well/ground water) and treats the water through reverse osmosis (RO) process and provides this purified drinking water to the general public in the areas of Krishna District, Andhra Pradesh at affordable prices on pilot basis. The detailed process is given below: VCF enters into an agreement with Local gram panchayat (set up by State Government) to set up the plant in its jurisdiction and obtains permission from ground water board to extract the ground water for purification. VCF establishes water plant at its own cost in the land allotted by the gram panchayat and extracts the ground water. The extracted water is purified through Reverse Osmosis (RO) Process in the plants and stored in Silos. The purified drinking water is supplied to the villagers either through the dispensing unit at the plant or through a mobile tanker to remote villages at an affordable price. VCF proposes to use smart card technology to dispense wate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough dispensers/mobile tankers by a charitable organisation at a concessional rate is covered under exemption of GST as per SI.No 99 of Notification 02/2017-Central tax (Rate) dated 28/06/2017? SI. No.99. Intra state supplies of Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, demineralized and water sold in sealed container] On Verification of basic information of the applicant, it is observed that the applicant falls under State jurisdiction, i.e. Assistant Commissioner (ST), Benz Circle, Vijayawada-II Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax authorities to offer their remarks as per Sec. 98(1) of CGST /APGST Act 2017. In response, no remarks were received from the jurisdictional officers concerned on the issue, for which the Advance Ruling was sought by the applicant. 5. Applicant's Interpretation of Law: 5.1 In the given case, the applicant seeks a clarification on whether supply of drinking water to general public in unpacked/ unsealed manner through dispensers/ mobile tankers by a charitable organisation at a concessional rate is co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g added sugar or other sweetening matter nor flavoured. Schedule II - 6% SI.No. Chapter / Heading / Subheading/ Tariff item Description of Goods 46B 2201 Drinking water packed in 20 litre bottles 5.7 Thus, though water is mentioned at SI. No 24 of Schedule III (9% + 9%) and Drinking water packed in 20 litre bottles is mentioned at SI. No 46B of Schedule II (6%+6%), the taxability of the supplies come into picture only when it is supplied in sealed containers to customers. The applicant in this case is supplying drinking water in unsealed container to general public and the consideration is just an amount to cover operational cost and is not meant to derive any profits. Hence it is opined that VCF is not required to pay GST as per SI. No 99 of the Exemption Notification No. 2/2017 CGST (Rate) dated 28.06.2017. 5.8 Considering the above explanation, in view of the notification 02/2017 and clarification given by the Board vide its Circular NO.52/26/2018-GST dated 09.08.2018, it is clear that supply of drinking water in unp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on regarding applicability of GST on supply of safe drinking water for public purpose. 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 [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 drinking water for public purposes, if it is not supplied in a sealed container, is exempt from GST. The assumption of the applicant that the supply made by them attracts exemption as it is sold in unsealed containers and aimed at public purpose is erroneous. The above Circular reiterates the point that exemption is permissible only when the supply does not fall in the exclusion clause to serial no.99 of notification No. 2/2017- Central Tax (Rate) dated 28.06.2017. But as admitted by the applicant in the description of the detailed procedure involve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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