In re Oxyhydra Beverages Pvt. Ltd (GST AAR Gujrat)
In the matter concerning classification of “ALVA” black mineral water, the Gujarat Authority for Advance Ruling examined whether the product manufactured and supplied by the applicant was classifiable under HSN 22011010 as “mineral waters” for GST purposes. The applicant, engaged in manufacturing bottled water under the brand “ALVA,” stated that the product was sold in bottles of different capacities for human consumption and contained added minerals such as calcium, magnesium, and sodium. According to the applicant, the product did not contain added flavouring substances, sugar, sweeteners, preservatives, or any other additives.
The applicant relied on laboratory analysis and HSN explanatory notes to contend that mineral water, whether natural or artificial, falls under Heading 2201 provided it does not contain added sugar or flavouring. The applicant argued that the addition of minerals to purified water did not alter the classification outside Heading 2201 and requested clarification regarding the applicable GST rate if the proposed classification was accepted.
During personal hearing, the authorised representative submitted process flow charts relating to RO water production, alkaline water processing, black alkaline water processing, and rinsing, filling, and capping operations. The Authority examined the laboratory report and process documents and noted that the sample was described as “drinking water” and a “black coloured liquid.” It further observed that neither the laboratory report nor the manufacturing flow charts indicated the addition of sugar, sweetening agents, or flavouring substances.
