In the middle of GST application, Tamil Nadu Packaged Drinking Water Manufacturers Association has applied a plea in favor of exempting themselves from the GST effects as the reason offered was that the water supply basically completes needs of the domestic region.
V. Murali, a responsible official from the association said that, “the State government had been providing exemption from Value Added Tax for packaged drinking water in the 20-litre bubble tops and sachets categories since 2007, We have been able to provide water at a competitive price without much increase for nearly a decade because of the exemption.”
The additional cost will be added to the final price of water and this will take away the motive of GST. And as far as concerned, this year the association also noticed a dip of 5 percent in sales which also broadened the tension lines over the forehead of the industry.
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The statement said that “The manufacturers demanded that the packaged drinking water be classified separately and not included with other aerated drinks for levy of GST. Packaged drinking water other than bottled water must be exempt from GST as it caters largely to domestic consumers and the working class.”
