Summary: The Andhra Pradesh Authority for Advance Ruling (AAR), in the case of In re: Greater Visakhapatnam Smart City Corporation Ltd. (Advance Ruling No. 06/AP/GST/2024, dated May 02, 2024), ruled that the supply of sewage-treated water to industries is exempt from GST. The ruling refers to Entry No. 99 of the Notification No. 02/2017-Central Tax (Rate) dated June 28, 2017, which exempts certain types of water from GST. Greater Visakhapatnam Smart City Corporation Ltd., a public limited company, sought clarity on whether GST applies to their supply of treated sewage water. The AAR observed that the GST exemption notification excludes certain types of water, such as aerated and mineral waters, but includes purified water. Since sewage-treated water falls under this category, it is exempt from GST. The AAR concluded that the supply of sewage-treated water is not subject to GST, applying a nil rate as per the exemption notification. This decision reinforces the non-taxability of treated sewage water provided for industrial use under Indian GST regulations.
The AAR, Andhra Pradesh in case of In re: Greater Visakhapatnam Smart City Corporation Ltd. [Advance Ruling No. 06/AP/GST/2024 dated May 02, 2024], ruled that the supply of sewage-treated water which is supplied to various industries is exempt from levy of GST as per Sr. No. 99 of the Notification No. 02/2017-Central Tax (Rate) dated June 28, 2017 (“the Exemption Rate Notification”).
Facts:
M/s. Greater Visakhapatnam Smart City Corporation Limited (GVSCCL) (“the Applicant”) a public limited company registered under GST Act. The Applicant is engaged in the business of supply of sewage treated water to various industries. The Applicant filed an application for advance ruling on whether GST would be applicable on sewage water treated by the Applicant which is further supplied to various industries.
Issue:
Whether supply of Sewage Treater Water is exempt from levy of GST?
Held:
The AAR, Andhra Pradesh in Advance Ruling no. 06/AP/GST/2024 held as under:
- Observed that, Entry No. 24 of Schedule III of Notification No. 01/2017-Central Tax (Rate) dated June 28, 2017, as amended, uses the word “Waters” including natural or artificial mineral waters and aerated waters not containing added sugar or other sweetening matter nor flavoured. The words ‘waters’ is used in plural form and further specifically mentions inclusion of different type of waters which are to be covered under the aforesaid entry.
- Further observed that, new entry relating to water was inserted i.e. Entry No. 46B relating to Drinking Water packed in 20-litre bottles vide Notification No. 06/2018-Central Tax (Rate) dated January 25, 2018.
- Noted that, entry relating to water i.e., Entry No. 99 of exemption rate notification, specifically excludes water falling within the purview of aforesaid entries
- Opined that, the Sewage Treated Water is purified water falling within the purview of Entry No. 99 of exemption rate notification
- Ruled that, the rate of tax is nil in case of supply of aforesaid goods as per Entry No., 99 of exemption rate notification.
Relevant provision:
Entry No. 99 of the Exemption Rate Notification:
| “99. | 2201 | Water [other than aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container]” |
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