In re Greater Visakhapatnam (GST AAR Andhra Pradesh)
M/s Greater Visakhapatnam Smart City Corporation Limited (GVSCCL), a special purpose vehicle jointly owned by the Government of Andhra Pradesh and the Greater Visakhapatnam Municipal Corporation (GVMC), filed an application before the Andhra Pradesh Authority for Advance Ruling (AAR) under Section 97(1) of the CGST and APGST Acts. The applicant sought clarity on whether maintenance charges collected for flow meters installed at the premises of Hindustan Petroleum Corporation Limited (HPCL) for measuring recycled water constituted a composite supply along with the recycled water supply, and if not, what rate of GST would apply.
GVSCCL, incorporated under the Companies Act, 2013, was established to execute Smart City Mission projects. Under this initiative, GVSCCL and GVMC undertook a project for developing a sewerage network, pumping stations, and wastewater treatment plants, including systems for supplying recycled water to industries. The tripartite agreement between GVMC, GVSCCL, and HPCL (dated 10.06.2025) governed the supply of recycled water, under which metering was to be carried out using flow meters installed by GVSCCL at HPCL’s premises. Commercial operations commenced on 01.07.2023, with approximately 18 MLD of recycled water supplied to HPCL. The recycled water was already covered under Sl. No. 99 of Notification No. 02/2017-CT-(Rate) dtd.28.06.2017, and hence exempt from GST.
