In re Aquaa Care (Surat) RO Technologies Private Limited (GST AAR Gujarat)
Where company is selling water in containers whether selling of container and water is composite supply?
We agree with the understanding of the applicant as well as that of Jurisdictional office that selling water in containers is composite supply as the principal activity is selling of purified water only.
FULL TEXT OF ORDER OF BEFORE THE AUTHORITY OF ADVANCE RULING,GUJARAT
2. The applicant, vide Form GST ARA-01, specifically mentioned their queries as under :
1) What is the classification when the water is sold in non-sealed container and its HSN code?
2) Where company is selling water in containers whether selling of container and water is composite supply?
2.1 The applicant M/s Aquaa Care (Surat) RO Technologies Private Limited, vide Annexure -I & Annexure-II, submitted the statements of relevant facts having a bearing on the question(s) raised which is as follows:
“M/s. Aquaa Care (Surat) RO Technologies Private Limited is a company registered under the companies act, 1956 incorporated on 12th February, 2010 having CIN -U29259GJ2010PTC059552”.
“The objective of the company is to carry on the business of importing RO water plants. The company is also engaged in manufacture/assemble RO water plants, water treatment plants and develop technologies for water purifications. It also manufactures and import RO plants spares and undertake servicing, job work/repairs of all type of RO water plants/water treatment plants and water purifiers.”
2.2 Business process of selling purified water as submitted by the applicant :-
At present the company is engaged in manufacture/assemble RO water plants but the company has some proposed business activity for which they require some clarity.
The company will purify water using RO and UV technology and sell the purified water in glass (without seal or lid) and in bottles. For selling of water, the company purchase containers including bottles and glasses.
The company will sell purified water to the Customers on Railway station/ Villages. For this purpose the company will set up water stations at the railway platform and Water ATM at the villages to supply purified water.
The customers can fill the water in the containers carried by them only. But in some cases where the customer doesn’t carry anything with them the company shall provide bottle and glass for filling the water. The glass is obviously not sealed even in case of bottles they will not seal it they will just provide the bottle with the cap don’t use any lid for sealing it.
Since in first case the company is selling water without container and in second case the company is selling water with container. But again that container is not sealed and will not have any tag and brand name of company.
2.3 Looking to the above business process, the following questions rises in the mind of applicants:
(i) What is the classification when the water is sold in non- sealed container and its HSN Code?
(ii) Where company is selling water in containers whether selling of container and water is composite supply?
2.4
Annexure-II
Statement containing the applicant’s interpretation of law and/or fact
1.0 Question No. – 1 –
What is the classification when the water is sold in non- sealed container and its HSN Code?
The water is classified under chapter 22 of the Central Excise Act and notified in both the notifications, Notification No 01/2017 – Central Tax (Rate) dated 28th June 2017 as well as in Notification No 2/2017 – Central Tax (Rate) dated 28th June 2017.
1.1 Provisions of Notification No 1/2017 – Central Tax (Rate) dated 28th June 2017 reads as under:-
G.S.R. (E). In exercise of the powers conferred by sub-section (1) of section 9 of the Central Goods and Services Tax Act; 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby notifies the rate of the central tax of- (i) 2.5 per cent, in respect of goods specified in Schedule I, (H) 6 per cent, in respect of goods specified in Schedule II, (iii) 9 per cent, in respect of goods specified in Schedule III, (iv) 14 per cent, in respect of goods specified in Schedule IV, (v) 1.5 per cent, in respect of goods specified in Schedule V, and (vi) 0.125 per cent, in respect of goods specified in Schedule VI appended to this notification (hereinafter referred to as the said Schedules), that shall be levied on intraState 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 III – 9%
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