Subject: GST ON WATER SUPPLIED THROUGH TANKER

[GANESH KANCHAN]

Subject: GST ON WATER SUPPLIED THROUGH TANKER

DEAR SIR

A CO-OP SOCIETY OWNS TANKER THROUGH WHICH IT SUPPLIES WATER TO ITS MEMBERS ON ACTUAL COST BASIS. WATER IS BEING USED BY THE MEMBERS FOR WASHING AND CONSUMPTION PURPOSE. IS IT TAXABLE AS UNDER 'DISTIBUTIVE SERVICE' OR EXEMPT? KINDLY ENLIGHTEN WITH ANY AAR OR CASE LAW?

GANESH KANCHAN

AI Summary

Taxability of water supply through tanker: distributive service attracts GST while bulk water as goods may be exempt.
Tax treatment turns on classification: bulk ordinary water supplied in tankers may be exempt as goods, while the arrangement and delivery of water by tanker is a Water Distribution Service treated as a taxable service. Even supplies by a cooperative on a cost recovery basis can have a taxable distributive service component, and advance rulings have upheld taxation of the distribution service in comparable fact patterns.