Page 160 - GSTL_7th May 2020_Vol 36_Part 1

118 GST LAW TIMES [ Vol. 36
exempts intra-State supplies of goods, the description of which is
specified in column (3) of the Schedule appended to this notifica-
tion, falling under the tariff item, sub-heading, heading or Chapter,
as the case may be, as specified in the corresponding entry in col-
umn (2) of the said Schedule, from the whole of the central tax levi-
able thereon under section 9 of the Central Goods and Services Tax
Act, 2017 (12 of 2017).

Sr. Chapter/Heading/ Description of Goods
No. Sub-heading/
Tariff item
99 2201 Water [other than aerated, mineral, puri-
fied, distilled, medicinal, ionic, battery,
de-mineralized and water sold in sealed
container]

2.5 The applicant has evaluated the terms used in the above provisions :-
• In common parlance the meaning of following terms are as under :
• Aerated water means water to which air is added. Water made ef-
fervescent by being charged with carbon dioxide or some other gas.
• Mineral water means water occurring in nature with some dis-
solved salts present, often bottled and sold as drinking water.
• Purified water is water that has been mechanically filtered or pro-
cessed to remove impurities and make it suitable for use.
2.6 Understanding and Interpretation by the applicant :
(i) As per the Notification No. 1/2017-Central Tax (Rate) the water, in-
cluding natural or artificial mineral waters and aerated waters, is
taxable at the rate of 18% i.e. CGST @ 9% and SGST @ 9%. Further
Notification No. 2/2017-Central Tax (Rate) provides for exemption
of normal water, aerated water, mineral water, purified water, dis-
tilled water, medicinal water, ionic water, battery water, de-
mineralized water if they are sold in non-sealed container.
(ii) As the words used in Notification no. is “Water [other than aerated,
mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and
water sold in sealed container]” which means treated water (aerated,
mineral, purified, distilled, medicinal, ionic, battery, de-
mineralized) if sold in sealed container are not exempt and taxable as
per Notification Number 1/2017-Central Tax (Rate). But if the same
is sold in non-sealed container are exempt from GST.
2.7 Business Process of the Applicant as submitted by the applicant :-
(i) As already mentioned in the business process in “Annexure I”, the
proposed activity of the applicant includes selling of water in con-
tainers as well as without containers where the customers carry con-
tainer with themselves.
(ii) Thus as per interpretation and understanding the transaction falls
under Notification Number 2/2017-Central Tax (Rate), dated 28th
June, 2017 as the applicant is not selling the water in sealed contain-
ers they are only providing the containers for filling they don’t seal
it with any lid from protection.

GST LAW TIMES  7th May 2020  160