In re Vijayavahini Charitable Foundation (GST AAR Andhra Pradesh)
Question: Whether supply of drinking water to general public in unpacked/unsealed manner through dispensers/mobile tankers by a charitable organisation at a concessional rate is covered under exemption of GST as per Sl.No 99 of Notification 02/2017 – central tax (Rate) dated 28/06/2017? Sl.No.99. “Intra state supplies of Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, demineralized and water sold in sealed container]”
Answer: The said supply is not covered under exemption as explained supra and taxable @ 18% Vide Notification No. 1/2017-Central Tax (Rate), dated, 28th June, 2017 as amended from time to time.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, ANDHRA PRADESH
(Under sub-section (4) of Section 98 of Central Goods and Services Tax Act, 2017 and sub- section (4) of Section 98 of Andhra Pradesh Goods and Services Tax Act, 2017)
1. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and SGST Act, 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the APGST Act.
2. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s. Vijayavahini Charitable Foundation (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017.
3. Brief Facts of the case:
3.1 The applicant, M/s. Vijayavahini Charitable Foundation (VCF), bearing GST registration number 37AAFCV9493C1ZW, is a Sec. 8 Company registered under the Companies Act, 2013, which undertakes, encourages, supports and aids charitable activities in relation to poor in the areas of medical relief, education, health, vocation, livelihood etc. It is also exempted under section 12A of Income Tax Act, 1961. VCF has proposed to undertake the activity of providing pure and safe Drinking Water at an affordable cost for the under privileged people in villages in the state of Andhra Pradesh where clean and potable drinking water is not available.
3.2 The applicant proposes to draw water from the local water source (Open Well/Bore well/ground water) and treats the water through reverse osmosis (RO) process and provides this purified drinking water to the general public in the areas of Krishna District, Andhra Pradesh at affordable prices on pilot basis.
The detailed process is given below:
