Page 115 - GSTL_30th April 2020_Vol 35_Part 5

2020 ] IN RE : LATEST DEVELOPERS ADVISORY LTD. 601
respect of certain supplies. The relevant extract of the same is as
under :
‘In exercise of the powers conferred by sub-section (1) of section 11
of the CGST Act, the Central Government, being satisfied that it is
necessary in the public interest so to do, on the recommendations of
the Council, hereby exempts intra-State supplies of goods, the de-
scription of which is specified in column (3) of the Schedule ap-
pended to this notification, 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 Schedule, from the
whole of the central tax leviable thereon under section 9 of the
CGST Act.

Sl. Chapter, Description of Goods Rate Con-
No. Section, (per dition
Heading, cent.)
Group or
Service Code
(Tariff)
(1) (2) (3) (4) (5)
99 Heading Water [other than aerated, miner- Nil Nil
2201 al, purified, distilled, medicinal,
ionic, battery, de-mineralized and
water sold in sealed container]

It can be observed that Entry No. 99 of the Notification provides ex-
emption from levy of GST on supply of water, other than the speci-
fied categories.
• The applicant submits that since the Project is located in an area
where there is no proper water supply, the Customer intends to en-
ter into a contract with the Applicant for supply of water. The
transaction under the Contract II shall involve purchase of water by
the Applicant from the vendors and supply the water ‘as such’ to
the Customer.
• Water is movable in nature and therefore qualifies as goods as de-
fined under Section 2(52) of the CGST Act. Further, the Applicant
will procure the water from the vendors and will supply the water
‘as such’ to the Customer without carrying out any further process-
es in the water. In other words, the activity of the applicant is simp-
ly in the nature of trading of water where on one hand it shall pur-
chase the water from vendors and then supply the same to the Cus-
tomer.
• In order to determine the taxability of such supply, reference is
drawn to the Notification 12/2017. The Notification provides list of
goods which are exempt from GST. Entry No. 99 of the Notification
provides that supply of water other than the specified category is
exempt from levy of GST.
The water supplied by the applicant is tanker water and is not cov-
ered in any of the above mentioned exclusions form the exemption
such as aerated, mineral water, purified water etc. It is pertinent to
GST LAW TIMES  30th April 2020  115