GST exemption for tanker-supplied drinking water applies where water is not sold in sealed containers.
Entry No. 99 exempts water from GST, subject to exclusions for aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized water and water sold in sealed containers. The article notes that "purified" was omitted from the exclusion list with effect from 18 July 2022, and that drinking water supplied through tankers or in bulk after chlorination was not supplied in sealed containers. On that basis, the supply of drinking water for students at IIT Goa is treated as covered by the exemption and not liable to GST.
Issues: Whether supply of drinking water through tankers or in bulk quantities to IIT Goa for students, after chlorination and during the relevant period, was covered by Entry No. 99 of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 and therefore exempt from GST.
Analysis: Entry No. 99 grants exemption to water, subject to specified exclusions such as aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized water and water sold in sealed containers. The word "purified" stood omitted from the entry by Notification No. 7/2022-Central Tax (Rate) dated 13.07.2022, effective from 18.07.2022. The relevant supply was made after that amendment, and the drinking water was supplied through tankers, not in sealed containers. The circular on supply of safe drinking water for public purpose also clarifies that drinking water not supplied in sealed containers is exempt.
Conclusion: The supply was held to be covered by Entry No. 99 and exempt from GST.
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AI Drafter ✕
TaxTMI 
