The Andhra Pradesh Authority of Advance Ruling (AAR) directed that 18% Goods and Service Tax (GST) is payable on Drinking water supply by movable tankers.
The petitioner M/s. Vijayavahini Charitable Foundation (VCF) looks to support and aids charitable activities towards the poor in the medical relief region, education, health, vocation, livelihood, etc. beneath section 12A there is a privilege provided for the income tax act 1961. VCF has urged to overtake the practice of giving clean and hygienic drinking water at an affordable cost for the people in the village to whom the water shall not provide in Andhra Pradesh in which the clean and potable drinking water is not available.
The petitioner seeks the advance ruling upon the grounds of whether the supply of the drinking water to the general public in the unpacked or unsealed wat via dispensers/mobile tankers through the charitable firms at an exempted price is covered beneath the exemption of GST according to as per SI.No 99 of Notification 02/2017-central tax (Rate) dated 28/06/2017.
The petitioner has stated that Entry No 99 of notification 12/2017 is liable only if the water is provided in unsealed containers. For the concern, the water is sold in unsealed containers. It is important to condition for the advantage of the privilege. The villagers come and collect the water from the dispensing units or mobile tankers. But the beneficiaries are the ordinary public.
The two judges D.Ramesh and A.Shyam Sundar held that the major supply is the supply of the purified water in which the service element of distribution via movable units is the ancillary service. The purified water is liable to get taxed at an 18% rate as this is not fitted for the privilege beneath serial no. 99 of notification No. 2/2017- Central Tax (Rate) on June 28, 2017.
“It is invariably a composite supply and the rate of tax of purified water prevails, being the principal supply. The said supply is not covered under exemption and taxable at 18 per cent, the Authority of Advance Ruling (AAR)
The Authority of Advance Ruling (AAR) Maharashtra came up with a ruling that clarifies that immovable properties with no distinct goods and services. read more remarked.”
AAR held that since the Vijayavahini Charitable Foundation is supplying purified water, it is not fit for GST privilege.
