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.

[KASTURI SETHI]

It is manufacturing activity (product) under HSN 22. Manufacturer can opt for composition scheme.

[Himansu Sekhar]

If you are a composition dealer, then you are a regs. Person. The regd buyer will not pay gst on reverse charge

[KASTURI SETHI]

Agreed with Sh.Himanshu Sha Ji.

[Himansu Sekhar]

Thank you sir. Board has issued FAQs in this regard.

AI Summary

Manufacturing activity classification permits composition scheme eligibility; registered buyers need not pay GST under reverse charge.
Purifying and bottling borewell water into mineral drinking water is a manufacturing activity, enabling the supplier to opt for the composition scheme. A composition dealer should issue a bill of supply, and registered purchasers are not required to pay GST under the reverse charge mechanism on such supplies.