Drinking water packed in 20-litre bottles are liable to 12 per cent tax, water not containing added sugar or other sweetening matter are taxed at 18 per cent.
According to GST (Goods and Services Tax) and AAR (Authority for Advance Ruling) has said, supply of drinking water to the public through mobile tankers or dispensers by a charitable organisation is taxable at 18 per cent.
The Andhra Pradesh bench of the Authority for Advance Ruling (AAR) has observed in the case of Vijayavahini Charitable Foundation, that since the organisation is supplying purified water, hence it is not fit for GST exemption.
Advance ruling on whether the supply of groundwater after undertaking purification through Reverse Osmosis (RO) to the general public either through the dispensing unit or mobile tanker at a concessional rate is exempt from Goods and Services Tax (GST).
AMRG & Associates Senior Partner Rajat Mohan opined water sourced from open borewells/ ground are not potable, and are supposed to be treated/ purified before supply to the general public.
He added, "Imposing a tax of 18 per cent on purified water supplied to the public for consumption would be against the fundamental human right. Government must rise to this occasion and exempt all forms of supply of potable water in unsealed containers"