Supply of drinking water to the public thru cell tankers or dispensers with the aid of a charitable business enterprise is taxable at 18 in step with cent under the GST, AAR has dominated.
The Andhra Pradesh bench of the Authority for Advance Ruling (AAR) has ruled -- in the case of Vijayavahini Charitable Foundation -- that for the reason that agency is offering purified water, as a result it isn't always suit for GST exemption.
Vijayavahini Charitable Foundation had sought an advance ruling on whether or not the deliver of groundwater after project purification via Reverse Osmosis to the general public either through the dishing out unit or mobile tanker at a concessional fee is exempt from Goods and Services Tax (GST).
The AAR said the fundamental supply undertaken by the organization is a supply of purified water, which is taxable at 18 in step with cent, at the same time as the provider of distribution via cell units is an ancillary service and taxable at 18 per cent.
"It is forever a composite supply and the price of tax of purified water prevails, being the major deliver... The said deliver isn't covered beneath exemption and taxable at 18 consistent with cent...," it mentioned.
AMRG & Associates Senior Partner Rajat Mohan stated water sourced from open borewells/ ground is not potable, and thereby, that needs to be handled/ purified before supply to most of the people.
"Imposing a tax of 18 in step with cent on purified water supplied to the general public for consumption would be towards the essential human right. Government should upward thrust to this occasion and exempt all sorts of supply of potable water in unsealed bins," Mohan delivered.
Under GST, drinking water packed in 20-litre bottles are liable to 12 in step with cent tax and waters, together with herbal or artificial mineral waters and aerated water, no longer containing delivered sugar or other sweetening matter are taxed at 18 per cent.
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