TaxTMI 
TaxTMI 
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?
GST on treated water
23 Apr 2019 
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GST on processed water may be taxable as a service or nil-rated when classified as exempt water supply.
Tax liability for reverse-osmosis processed water depends on classification: processing may be treated as a service (not manufacture) and taxed as Business Support service or under service notifications, while supplies of ordinary water not falling within specified exclusions are nil-rated; the applicable GST rate therefore depends on whether the supply is characterised as exempt/nil-rated water or as a taxable service within relevant rate notifications. (AI Summary)
Tax liability for reverse-osmosis processed water depends on classification: processing may be treated as a service (not manufacture) and taxed as Business Support service or under service notifications, while supplies of ordinary water not falling within specified exclusions are nil-rated; the applicable GST rate therefore depends on whether the supply is characterised as exempt/nil-rated water or as a taxable service within relevant rate notifications. (AI Summary)