GST on treated water

[Kaustubh Karandikar]

XYZ will be processing MIDC Water through Reverse Osmosis process to remove dissolved salts. The said processed water will be sold to various factories for industrial use. Is XYZ liable to pay GST on this processed water? If yes what is the HSN code and percentage of GST?

AI Summary

Debate on GST Rate for Processed Water: Is It Business Support Service at 18% or Composite Supply at 12%? A company, referred to as XYZ, processes water through reverse osmosis for industrial use and inquires about the Goods and Services Tax (GST) implications. One participant suggests that processing water does not constitute manufacturing, thus classifying it under business support services with an 18% GST rate. Another participant points out that water, excluding certain types, attracts a NIL GST rate under specific conditions. However, if treated as a service, it may attract a 12% GST rate as part of a composite supply to the government. The discussion revolves around whether the processed water is taxable and the applicable GST rate.