drinking water supplier

[pawan singhal]

can a drinking water suuplier eligible to take registeration in composition scheme. if yes when he issue bill of supply then is registered person have to pay tax on RCM basis on drinking water exp bill. is drinking water supplier treat as a trader or manufacturer. he purified borewale water to mineral water and child water.

AI Summary

Drinking water suppliers can choose GST composition scheme; registered buyers exempt from reverse charge under HSN 22. A drinking water supplier inquired about eligibility for the composition scheme under the Goods and Services Tax (GST) and whether registered persons must pay tax on a reverse charge basis for drinking water bills. The discussion clarified that purifying borewell water to mineral or chilled water is considered a manufacturing activity under HSN 22, allowing the supplier to opt for the composition scheme. It was also noted that if the supplier is a composition dealer, the registered buyer is not required to pay GST on a reverse charge basis.