GST rate for transportation of water

[Dhananjai Rai]

Whether own water transported through tankers from one place to another will be treated as a transport contract under GST or as a water distribution service. Both have different rates for GST. This is not a supply but pure service contract.

[sarojni singh]

GTA services (including transportation of used household goods for personal use) attract a GST rate of either 5 percent (2.5 percent CGST, 2.5 percent SGST), or 12 percent (6 percent CGST, 6 percent SGST).One can Verify any GST number here and also get all detail about GST number.

[Dhananjai Rai]

Thanks.

And what type of services are defined in Water Distribution Services. Code 996921

[KASTURI SETHI]

996921 Water distribution services

This service code includes distribution of water through mains, by trucks or other means.

GST @ 18% vide Notification No.11/17-CT(R) dated 28.6.17 as amended from time time up to 30.9.2019

[Dhananjai Rai]

Thanks Sir.

Main issue is whether our own water transported through truck form one place to another will be covered in water distribution service or it will be treated as transport contract.

[KASTURI SETHI]

It is water distribution service.

[Vishal Garge]

Dear All ,

please ignore my following comment for this subject.

it wrongly posted here.

6 Dated: 24-2-2020
By:- Vishal Garge

Ok noted.As per instruction ,FTWZ can hold the goods behalf of buyer but could you please confirm whether FtWZ owner can enter in commercial activities and clear the goods to Indian company behalf of foreign buyer/supplier without agreement?

Please confirm.

also this type of transaction would attract custom duties which can increase the cost burdan by 7.5% to 25% along with applicable cess to indian buyer / foreign supplier

[Dhananjai Rai]

Sir,

Reference to the replies.

I have a related query. If we transport some material from one place to another its a transport contract. Same thing should be applicable to water.

Water distribution service comes under broad category of Electricity, Gas and Water distribution services. This should be applicable to utility services.

Kindly clarify

[KASTURI SETHI]

There are two services involved in this scenario. Since transportation /tanker is yours, so it is self service. Self service is not supply No GST leviable. You are supplying water by your own truck/tanker etc. So it is supply of service as already mentioned Do not mix two services.

AI Summary

Water distribution service classification affects GST rate; transporting own water by own tanker may be self service and not taxable.
The document addresses whether transporting one's own water by tanker is a transport contract or falls under water distribution service (service code 996921). Replies state water distribution normally attracts the notified GST for distribution services, while movement by Goods Transport Agencies follows separate rates. Crucially, if the tanker and transport are owned and used by the water owner, this may be characterised as self service, not a supply, and thus not subject to GST.