Page 158 - GSTL_7th May 2020_Vol 36_Part 1

116 GST LAW TIMES [ Vol. 36
posite supply where selling of purified water is the principal supply - Classi-
fiable under HSN Code 2201 and is liable to pay full rate of Tax, i.e., 18% (9%
CGST and 9% SGST) - Sections 2(30) and 8 of Central Goods and Services Tax
Act, 2017. [paras 1.2, 4.2]
Ruling in favour of department
DEPARTMENTAL CLARIFICATION CITED
C.B.I. & C. Circular No. 52/26/2018-GST, dated 9-8-2018 .............................................................. [Para 4.1]
REPRESENTED BY : Shri Avinsah Poddar, Advocate, for the Assessee.
[Order]. - Advance Ruling No. GUJ/GAAR/R/11/2019 (in Application
No. Advance Ruling/SGST & CGST/2018/AR/7).
2. The applicant, vide Form GST ARA-01, specifically mentioned their queries
as under :
(1) What is the classification when the water is sold in non-sealed con-
tainer and its HSN code?
(2) Where company is selling water in containers whether selling of
container and water is composite supply?
2.1 The applicant M/s. Aquaa Care (Surat) RO Technologies Private Limited,
vide Annexure-I & Annexure-II, submitted the statements of relevant facts having a
bearing on the question(s) raised which is as follows :
“M/s. Aquaa Care (Surat) RO Technologies Private Limited is a compa-
ny registered under the Companies Act, 1956 incorporated on 12th February,
2010 having CIN - U29259GJ2010PTC059552”.
“The objective of the company is to carry on the business of importing
RO water plants. The company is also engaged in manufacture/assemble RO
water plants, water treatment plants and develop technologies for water purifica-
tions. It also manufactures and import RO plants spares and undertake servicing,
job work/repairs of all type of RO water plants/water treatment plants and wa-
ter purifiers.”
2.2 Business process of selling purified water as submitted by the ap-
plicant :-
At present the company is engaged in manufacture/assemble RO water
plants but the company has some proposed business activity for which they re-
quire some clarity.
The company will purify water using RO and UV technology and sell the
purified water in glass (without seal or lid) and in bottles. For selling of water,
the company purchase containers including bottles and glasses.
The company will sell purified water to the Customers on Railway sta-
tion/Villages. For this purpose the company will set up water stations at the
railway platform and Water ATM at the villages to supply purified water.
The customers can fill the water in the containers carried by them only.
But in some cases where the customer doesn’t carry anything with them the
company shall provide bottle and glass for filling the water. The glass is obvious-
ly not sealed even in case of bottles they will not seal it they will just provide the
bottle with the cap don’t use any lid for sealing it.
Since in first case the company is selling water without container and in
second case the company is selling water with container. But again that container
is not sealed and will not have any tag and brand name of company.
GST LAW TIMES  7th May 2020  158