Case Law Details
In re Angeripalayam Common Effluent Treatment Plant Limited (GST AAR Tamilnadu)
In the case of Angeripalayam Common Effluent Treatment Plant Limited, there were two key questions raised regarding the sale of treated water. The first question pertained to the appropriate classification of the treated water, and the second question was about the applicable GST rate on this treated water. To address these queries, the Authority for Advance Ruling in Tamil Nadu conducted a thorough examination of the nature of the treatment process and the characteristics of the treated water.
Detailed Analysis
The applicant, Angeripalayam Common Effluent Treatment Plant Limited, operates as a common effluent treatment plant primarily serving dyeing units in the region. They purchase effluent water from these dyeing units, process it at their plant, and then sell the resultant treated water back to the dyeing units. The key issue at hand was how to classify this treated water for GST purposes.
The applicant had initially classified their services as hazardous waste treatment and disposal services, subject to a GST rate of 12%. However, they sought to change this classification, considering the recovered water as demineralized water, and therefore classifiable under HSN 2201 with an 18% GST rate.
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