Page 163 - GSTL_7th May 2020_Vol 36_Part 1

2020 ] IN RE : AQUAA CARE (SURAT) RO TECHNOLOGIES PRIVATE LIMITED 121
Council. Point No. 4 of this para provided for water supplied for
public purposes (other than in sealed containers} does not attract
GST.
(Press Release attached at Annexure A)
This clarifies that water (in form) supplied for public purposes and
which is not in sealed container shall not attract GST and hence
will not be taxable.
(iii) The applicant submitted that this supports their view and
that the intentions of Government is very clear that water un-
less sold in sealed container is not taxable under GST.
(iv) Applicant has therefore prayed to kindly pronounce the rul-
ing in affirmative that GST not applicable.
1.2 Regarding Question 2, i.e.
1.2.1 Where Applicant is selling water in containers whether selling of con-
tainer and water is composite supply?
(i) In this regard applicant has the same view as already submit-
ted in Annexure II, annexed with the application of Advance
Rulings, which is reproduced as under.
For being a composite supply there [are] 3 conditions which
[are] to be satisfied :
 two or more taxable supplies of goods or services or
both;
 naturally bundled and supplied in conjunction with
each other in the ordinary course of business; and
 one of which is a principal supply
(ii) If the above three conditions are satisfied then the supply
shall be taxable at the rate of principal supply of goods or
services.
Let’s evaluate the provisions pertaining to composite supply
in the present case :- For selling of purified water it is to be
filled in some glass, bottles or containers. In case the custom-
er carry the same with on their own there is nothing like
composite supply as first condition two or more taxable sup-
plies are not there.
In case where the applicant is providing the container;
 the Applicant is supplying water and for supply of
water they are providing containers and hence there
is supply of two or more taxable supplies;
 water cannot be sold standalone without filling in the
containers and thus the supply is naturally bundled
and supplied in conjunction with each other in the
ordinary course of business; and
 now the selling of water is the principal supply, con-
tainers are used just for filling it.
(iii) Applicant believes that all the conditions of composite supply
are satisfied, selling of container and water is composite sup-
GST LAW TIMES  7th May 2020  163