Page 117 - GSTL_30th April 2020_Vol 35_Part 5

2020 ] IN RE : LATEST DEVELOPERS ADVISORY LTD. 603
(c) The applicant has also submitted that he is going to enter into Con-
tract-II with residents of a society to supply water. The applicant
has submitted a draft copy of Contract-II in this regard. The appli-
cant has submitted that in course of the aforesaid Contract he will
purchase water tanker from vendors and subsequently supply the
same to the individual resident of the society (RWA) in same form
without any processing on the water purchased.
(d) The applicant is claiming that since supply of water as a goods is
exempted from GST in accordance with Notification No. 2/2017,
dated 28-6-2017, hence this supply is exempted from GST.
(e) The applicant has also submitted that though he is not admitting
that there is supply of services in Contract-II but if it is assumed that
there is supply of goods (water) and services involved in Agree-
ment-II, then the supply will be a composite supply of water where-
in principal supply will be of water. Since principal supply is ex-
empted from GST, the whole supply of Contract-II is exempted
from GST.
(f) First, we need to examine whether water is a goods or not.
Section 2(52) of GST Act, 2017 defines goods as under -
“goods” means every kind of movable property other than
money and securities but includes actionable claim, growing
crops, grass and things attached to or forming part of the land
which are agreed to be severed before supply or under a con-
tract of supply;’
We find in view of above definition that supply of water is a supply
of goods. Further, the relevant portion of notification as referred
above is as under :-
Notification No. 02/2017, dated 28-6-2017

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]

(g) We observe that, the applicant is involved in two agreements where
Contract-I is for maintenance services provided to the Resident Wel-
fare Association (RWA) and Contract-II is for supply of water to the
individual resident residing in the society (RWA).
(h) We further find that GST on services provided by the Resident Wel-
fare Association (RWA) to its resident members is @ 18% when each
unit household in a society pays more than Rs. 7500/- per month for
said services and the supplier of services (RWA in the present case)

GST LAW TIMES  30th April 2020  117