Black Mineral Water Taxable at 5% in Absence of Sugar & Flavouring

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.

The Authority referred to Chapter 22 of the First Schedule to the Customs Tariff Act, 1975, particularly Heading 2201 covering waters, including natural or artificial mineral waters and aerated waters, not containing added sugar, sweetening matter, or flavouring. It also relied upon HSN explanatory notes stating that artificial mineral waters prepared from ordinary potable water by adding mineral salts or gases are covered within Heading 2201.

After considering the submissions and records, the Authority concluded that the applicant’s “Black Mineral Water” under the brand “ALVA” was correctly classifiable under HSN 22011010 as mineral water. It held that the absence of sugar, sweeteners, and flavouring substances supported classification under Heading 2201.

The Authority then examined Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025 and noted that Entry No. 146 of Schedule I covered waters, including natural or artificial mineral waters and aerated waters not containing added sugar or flavouring, taxable at 5% GST. Accordingly, it ruled that the applicant’s product was liable to GST at 5% comprising 2.5% CGST and 2.5% SGST.

FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT

M/s. Oxyhydra Beverages Private Limited, Lodhika, Sidhdhivinayak Industrial Zone, Plot No. 27, Sonal krupa, I,odhika Sub Post Office, I,odhika, I,odhikas, Rajkot, Gujarat, 360035. [for short —`applicant’], is registered under GST and their GSTIN is 24AAEC05970G1ZD.

2. The applicant (GSTIN 24AAEC05970G1ZD) is engaged in the business of manufacture and supply of bottled water under the brand ALVA (trade name : Oxyhydra Beverages Pvt.Ltd.). The product is sold in bottles of various capacities (250 ml, 475 ml, 500 ml& in 1 L) packed, labelled and marketed for human consumption. The product is water with added minerals (as per attached laboratory report), does not contain any added flavoring, added sugar, sweetening ‘matter, 2 preservatives or any other additives (lab reports confirm only mineral composition and standard physico-chemical parameters).

3. As per the laboratory analysis (Lab Report dated 17.09.2025), the product contains mainly calcium, magnesium, sodium at specified ppm levels. There are no added flavours, no added sugars/sweeteners, no preservatives and no other functional additives. The product is produced by the applicant by adding minerals to purified water at the manufacturing facility. The product is sold for human consumption as a packaged drinking water product and not sold as a medicinal product or as a food supplement. Photographs of the product as well as the copy of the lab report submitted by the applicant is reproduced here below:

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4. The applicant manufactures I,odhikas, Rajkot, Gujarat, sells to distributors/retailers and also supplies to applicant collects GST and issues tax invoices for B2B and institutional buyers. 1320 supplies.

5. The applicant has asked the following question on Advance Ruling:

1. Whether the supply of our black m -water with brand name “ALVA” Manufactured and supplied by the applicant is classifiable under HSN 22011010 (i.e. mineral waters and aerated waters : mineral waters’) or some other HSN heading for the purpose of GST?

2. In the event HSN 22011010 is not held applicable, the applicant requests the AAR to kindly specify the correct HSN heading and the GST rate applicable to the said product.

6. The applicant’s interpretation of law is as under:

(a) The applicant’s product is a “water, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured” and therefore falls within HSN 22011010 (mineral waters/mineral water).

(b) The text of the HSN heading and sub-heading (2201/22011010) covers mineral waters and aerated waters that do not contain added sugar or flavour, that the applicant’s product contains added minerals only (as per the lab report), and contains no flavouring or sweeteners & therefore the product squarely fits within the scope of HSN 22011010.

(c) The addition of minerals (to achieve mineral composition) does not transform the product into a different category outside heading 2201, that 2201 notes and explanatory notes for HS Chapter 22 treat mineral waters (22011010 etc.) (natural or artificial) as covered under sub-headings for mineral waters (22011010 etc.). Therefore, the presence of minerals (whether naturally occurring or added to purified water to produce a mineral water) does not preclude classification under 22011010 provided there is no added sugar or flavour (which is not present in the applicant’s product).

(d) If the AAR takes a different view, the applicant requests the AAR to clarify whether the product would fall under another sub-heading of Chapter 22 i.e. “waters containing added sugar or sweetening matter or flavoured” e.g. 2202 — or other sub-headings of 2201) and to specify the correct HSN and applicable GST rate.

(e)Applicant relies upon (i) product label and technical specification. (ii) laboratory analysis report confirming composition and (ii) the explanatory notes/HSN text for Chapter 22.

(f)The applicant has contended that the supply of ALVA is classifiable under HSN 22011010, or that if there is an alternative heading, the correct FISN heading may be specified.

7. Personal hearing was granted on 08.04.2026 wherein Shri Bansi Sudhir Pandya, authorised representative appeared on behalf of the applicant and reiterated the facts & grounds as stated in the application. During the course of hearing, the representative has submitted flow charts marked as “Raw materials to product R.O. water” and flow charts showing processes carried out in Alkaline Water Plant, Black Alkaline Water Plant as well as flow chart regarding rinsing, filling & capping RFC plant. Images of the same are shown hereunder:

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Discussion and findings

8. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same, except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act.

9. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made both oral and written during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant’s submission/ interpretation of law in respect of question on which the advance ruling is sought. We also considered the written submission provided by the Assistant Commissioner of the State Tax, Unit-92, Rajkot dated 07/04/2026.

10. We find that the applicant is engaged in the business of manufacture and supply of bottled water under the brand ALVA (trade name : OXYHYDRA BEVERAGES PVT.LTD.) which is sold in bottles of various capacities (250 ml, 475 ml, 500 ml& in 1 L) packed, labelled and marketed for human consumption. The applicant has submitted that their product is water with added minerals (as per laboratory report shown in para 3 above), does not contain any added flavoring added sugar, sweetening matter, preservatives or any other additives (lab reports confirm only mineral composition and standard physico-chemical parameters). The applicant is of the opinion that their product is covered under HSN heading and sub­heading (2201/22011010) as it covers mineral waters and aerated waters that do not contain added sugar or flavour, that the applicant’s product contains added minerals only and contains no flavouring or sweeteners & therefore the product squarely fits within the scope of HSN 22011010. The applicant has further stated that the addition of minerals (to achieve mineral composition) does not transform the product into a different category outside heading 2201, that 2201 notes and explanatory notes for HS Chapter 22 treat mineral waters (22011010 etc.) (natural or artificial) as covered under sub-headings for mineral waters (22011010 etc.) and therefore, the presence of minerals (whether naturally occurring or added to purified water to produce a mineral water) does not preclude classification under 22011010 provided there is no added sugar or flavour (which is not present in the applicant’s product).

11. The applicant has asked the following question on Advance Ruling:

1. Whether the supply of our black mineral water with brand name “ALVA” manufactured and supplied by the applicant is classifiable under IISN 22011010 (i.e. mineral waters and aerated waters : mineral waters”) or some other HSN heading for the purpose of GST?

2. In the event HSN 22011010 is not held applicable, the applicant requests the AAR to kindly specify the correct HSN heading and the GST rate applicable to the said product.

12. We have gone through the lab report of the applicant’s product as well the various flow charts marked as “Raw materials to product R.O. water” and flow charts showing processes carried out in Alkaline Water Plant, Black Alkaline Water Plant as well as flow chart regarding rinsing, filling & capping RFC plant as appearing in paras – 3 & 7 above The lab report suggests that the sample of the product is “Drinking Water” and Black coloured liquid (black water). On going through the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), we find that beverages arc covered under Chapter 22 which covers “Beverages, spirit and vinegar” and drinking water/mineral water etc. being ‘beverages’, would fall under the said Chapter. Further, since the applicant has opined that the black mineral water with brand name “ALVA”  manufactured and supplied by them is classifiable under IISN 22011010, we find it prudent to refer to the Chapter Notes of Chapter 22 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), heading 2201 as per the Customs Tariff as well as the HSN notes of heading 2201. The same are reproduced below:

CHAPTER 22: Beverages, spirits and vinegar

NOTES:

1. This Chapter does not cover:

(a) products of this Chapter (other than those of heading 2209) prepared for culinary purposes and thereby rendered unsuitable for consumption as beverages (generally heading 2103);

(b) sea water (heading 2501);

(c) distilled or conductivity water or water of similar purity (heading 2853);

(d) acetic acid of concentration exceeding 10 % by weight of acetic acid (heading 2915);

(e) medicaments of heading 3003 or 3004; or

(f) perfumery or toilet preparations (Chapter 33).

2. For the purposes of this Chapter and of Chapters 20 and 21, the —alcoholic strength by volume shall be determined at a temperature of 20° C

3. For the purposes of heading 2202, the term —non-alcoholic beverages means beverages of an alcoholic strength by volume not exceeding 0.5 % vol. Alcoholic beverages are classified in headings 2203 to 2206 or heading 2208 as appropriate.

SUB-HEADING NOTE:

For the purposes of sub-heading 2204 10, the expression —sparkling wind means wine which, when kept at a temperature of 20°C in closed containers, has an excess pressure of not less than 3 bars.

2201- WATERS, INCLUDING NATURAL OR ARTIFICIAL MINERAL WATERS AND AERATED WATERS, NOT CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER NOR FLAVOURED; ICE AND SNOW

2201 10 – Mineral waters and aerated waters

2201 10 10 — Mineral waters

2201 10 20 — Aerated waters

2201 90 – Other :

2201 90 10 — Ice and snow

2201 90 90 — Other

HSN Notes of heading 2201:

22.01 – Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow.

2201.10 -Mineral waters and aerated waters

2201.90 – Other 

This heading covers :

(A) Ordinary natural water of all kinds (other than sea water- see heading 25.01). Such waters remain in the heading, whether or not clarified or purified, except that distilled or conductivity water and water of similar purity are classified in heading 28.53. The heading excludes sweetened or flavoured water (heading 22.02).

(13) Mineral waters, whether natural or artificial

(C) Natural mineral waters contain mineral salts or gases.

The composition of these waters varies considerably and they are generally classified according to the chemical characteristics of their salts, e.g. :

(1) Alkaline waters.

(2) Sulphate waters.

(3) Halide waters.

(4) Sulphuretted waters.

(5) Arsenical waters.

(6) Ferruginous waters.

Such natural mineral waters may also contain natural or added carbon dioxide Artificial mineral waters are prepared from ordinary potable water by adding the active principles (mineral salts or gases) present in the corresponding natural waters so as to produce waters of the same properties.

The heading excludes sweetened or flavoured (orange, lemon, etc.) mineral Vaters (natural or artificial) (heading 22.02).

(C) Aerated waters (carbonated waters), i.e., ordinary potable waters charged with carbon dioxide under pressure. They are often called “soda waters or “Seltzer” waters although  natural mineral water.

The heading excludes sweetened or flavoured aerated waters (heading 22.02).

(D) Ice and snow, i.e., natural snow and ice, and artificially frozen water. The heading excludes edible ice of heading 21.05 and “carbonic acid snow” or “dry ice” (i.e., solid carbon dioxide) (heading 28.11).

13. Based on information available online, the applicant is an active company based in Rajkot, incorporated in January 2025 and engaged in the manufacturing and supply of black alkaline water. The test report submitted by the applicant for their product shows that it contains a black-coloured liquid (black water). The test report does not indicate the presence of sugar, sweetening agents or any flavouring substances in the sample of black mineral water. Additionally, the flow charts submitted by the applicant (referred to in para 7), which outline the entire process—from production of RO water, processing in the alkaline water plant and black alkaline plant to bottling and dispatch—do not mention the addition of sugar, sweetening agents or flavouring substances. Therefore, it is concluded that the applicant’s product, “Black Mineral Water” under the brand name “Alva,” is correctly classified under Heading 2201, specifically under sub-heading 22011010 of Chapter 22 of the First Schedule to the Customs Tariff Act, 1975.

14. Now, having decided the classification of the product, the rate of the said product needs to be ascertained for which a reference is required to be made to  Notification No. 9/2025-Central Tax (Rate), dated 17th September 2025,  Notification No. 9/2025-Central Tax (Rate), dated 17th September 2025 reads as under:

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
NOTIFICATION NO
9/2025-Central Tax (Rate)

New Delhi, the 17th September, 2025

In exercise of the powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue),  Notification 01/2017 dated 28-06-2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, on the recommendations of the Council, hereby notifies the rate of central tax of-

(i) 2.5 per cent. in respect of goods specified in Schedule I;

(ii) 9 per cent. in respect of goods specified in Schedule II;

(iii) 20 per cent. in respect of goods specified in Schedule III;

(iv) 1.5 per cent. in respect of goods specified in Schedule IV;

(v) 0.125 per cent. in respect of goods specified in Schedule V;

(vi) 0.75 per cent. in respect of goods specified in Schedule VI, and

(vii) 14 per cent. in respect of goods specified in Schedule VII,

appended to this notification (hereinafter referred to as the said Schedules), that shall be levied on intra-State supplies of goods, the description of which is specified in the corresponding entry in column (3) of the said Schedules, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedules.

Schedule I — 2.5%

15. On going through the aforementioned Notification, we find that Entry No.146 of’ Schedule I of Notification No.09/2025- Central Tax (Rate) covers heading 2201 which reads as “Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured”. wherein GST rate is 5% (2.5% COST + 2.5% SGST). Hence, we find and conclude that the product of the applicant namely ‘Black Mineral Water’ is classifiable under sub-heading 2201] 010 of the First Schedule to the Customs Tariff Act, 1975 (5 1 or 1975), falls under Entry No.146 of Schedule I of Notification No. 9/2025-Central Tax (Rate), dated 17th September 2025 and is liable to GST at the rate 5% (2.5% CGST + 2.5% SGST).

16. In view of the above, we rule as under: –

RULING

1. Whether the supply of our black mineral water with brand name “ALVA” manufactured and supplied by the applicant is classifiable under HSN 22011010 (i.e. mineral waters and aerated waters : mineral waters ‘) or some other HSN heading for the purpose of GST?

A.1: Black mineral water with brand name “ALVA” manufactured and supplied by the applicant is classifiable under HSN 22011010 of the First Schedule to the Customs Tariff Act, 1975 (51 af 1975).

2. In the event IISN 22011010 is not held applicable, the applicant requests the AAR to kindly specify the correct IISN heading and the GST rate applicable to the said product.

A.2: The aforementioned product appears at SrNo.146 of Schedule-I of Notification No. 9/2025-Central Tax (Rate), dated 17th September 2025 and is liable to GST at the rate 5% (2.5% CGST + 2.5% SGST).