Asking for GST Rate of HSN Code 28530010

[Kousick Adhikary]

Sir, could you please clarify the exact GST rate applicable to HSN Code 28530010 for Distilled Water (Demineralised Water)? HSN 2853 appears to attract GST at 5%; however, the corresponding GST rate notification specifically mentions only 'Compressed Air' under this heading. If the notification refers to the entire tariff heading 2853 without restricting the tariff item, then all goods covered under that heading, including Distilled Water (28530010), may qualify for the same rate.We would appreciate your guidance.

[Raam Srinivasan Swaminathan Kalpathi]

Dear Querist

Distilled water is generally classified under HSN 28539010. Certain speciliased industrial variants are classified under HSN 28530010 or 28530099 all attracting 5% GST (2.5% CGST, 2.5% SGST or 5% IGST).

[YAGAY and SUN]

Your interpretation raises a genuine classification issue, but under GST the rate is determined by the wording of the relevant GST rate notification entry, not merely by the tariff heading itself.

1. Classification of Distilled Water

HSN 28530010 specifically covers:

"Distilled or conductivity water and water of similar purity" under Heading 2853.

So there is little doubt that demineralised/distilled water falls under tariff item 28530010 if it meets that description.

2. Does Heading 2853 Automatically Attract 5% GST?

Not necessarily.

The key question is how the GST notification entry is drafted:

• If the notification states "Heading 2853" without restricting the goods, then all tariff items under 2853 would ordinarily attract the notified rate.
• However, if the notification states "Compressed Air falling under Heading 2853" or otherwise restricts the description, then only compressed air qualifies for that rate and the remaining goods under Heading 2853 would fall under another applicable entry/residuary rate.

Under GST jurisprudence, the description in the notification generally prevails over the mere tariff heading reference when the entry is product-specific.

3. Practical Concern in Your Case

You mention that the GST rate schedule appears to mention only "Compressed Air" against Heading 2853.

If that is the exact wording of the currently applicable notification entry, then one cannot automatically extend the 5% rate to Distilled Water (28530010) merely because both products share Heading 2853.

The legal test would be:

Question	Consequence
Entry covers "All goods of Heading 2853"	Distilled Water may get 5%
Entry covers only "Compressed Air" under Heading 2853	Distilled Water may not get 5% and another rate entry must be examined

4. What the HSN Databases Show

Several GST-HSN databases currently map HSN 28530010 to 5% GST.

However, these databases are secondary sources and are not conclusive legal authority. For litigation, audit, or assessment purposes, the controlling document remains the applicable CBIC GST Rate Notification and any subsequent amendments or clarifications.

5. Recommended Position

Before adopting 5% GST on demineralised water, I would recommend verifying:

1. The exact entry number in the applicable GST Rate Notification.
2. Whether the notification refers to:
   • Heading 2853 generally, or
   • Compressed Air specifically.
3. Whether any CBIC circular, Advance Ruling, or judicial decision has dealt with distilled water.

 

[YAGAY and SUN]

One additional practical point: when dealing with GST classification disputes, officers and auditors generally look at three things together:

1. HSN classification (whether the product is correctly classified under 28530010),
2. The exact wording of the GST rate notification entry, and
3. Any CBIC circulars, advance rulings, or judicial precedents that clarify the scope of the entry.

For distilled/demineralised water, the classification under HSN 28530010 may be straightforward, but the applicable GST rate still depends on how the relevant notification entry is drafted and interpreted.

[KASTURI SETHI]

MY VIEW

Distilled water is correctly classified under Chapter/Heading/sub-heading No. 2853 90 10 and as per the present legal position it attracts GST @ 18 % (9 % + 9 %) under Notification No. 09/2025-CT (R) dated 17.9.2025 and covered at serial no. 35 of Schedule-II of the Notification). No concessional rate is admissible.

Status in pre-GST era

As per Central Excise Tariff Act, 1985, distilled water was classified under Chapter/Heading/Sub-heading no. 2853 90 10 and it attracted CE duty @ 12.5 % (highest in Chapter 2https://www.taxtmi.com/tariff?id=838). No concessional rate of duty was granted earlier also.

[Kousick Adhikary]

In GST notifications and the Customs Tariff, "inorganic chemicals" and "inorganic compounds" are not synonymous terms.

1. Meaning of "Inorganic Chemicals"

The expression "inorganic chemicals" is a broad commercial/category term covering the entire range of products falling under Chapter 28. Chapter 28 itself is titled:

"Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes"

Thus, Chapter 28 consists of:

• Chemical elements (Hydrogen, Oxygen, Nitrogen, etc.)
• Inorganic acids
• Inorganic bases
• Salts
• Oxides
• Peroxides
• Various inorganic compounds
• Certain organic/inorganic compounds of precious metals, rare-earth metals, etc.

Therefore, all products of Chapter 28 may generally be referred to as "inorganic chemicals", but they are not necessarily "inorganic compounds."

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2. Meaning of "Inorganic Compounds"

An inorganic compound is a specific chemical compound formed by the combination of two or more elements.

Examples:

• Sodium chloride (NaCl)
• Sulphuric acid (H2SO4)
• Calcium carbonate (CaCO3)

However, some Chapter 28 goods are not compounds at all, such as:

• Oxygen (O2)
• Nitrogen (N2)
• Hydrogen (H2)
• Argon

These are chemical elements, not compounds. Yet they are classified in Chapter 28 as inorganic chemicals.

---

3. Importance for Heading 2853

Heading 2853 reads:

"Other inorganic compounds (including distilled or conductivity water and water of similar purity); liquid air; compressed air; amalgams..."

The legislature deliberately used the words "other inorganic compounds" and then separately listed:

• Distilled water
• Conductivity water
• Water of similar purity
• Liquid air
• Compressed air
• Amalgams

This indicates that the heading is not confined only to compounds. Otherwise, distilled water and compressed air would not have been specifically included.

[KASTURI SETHI]

The manufacturer cannot come out of Chapter 28.

Chapter has always wider scope than its Heading and its Heading has wider scope than its Sub-heading.

Concessional rate of tax (5 %) is not available here at all.

The manufacturer cannot escape GST Rate @ 18%, it being Tariff Rate.

These are my personal views.

[KASTURI SETHI]

In continuation of my reply at serial no.6 above, in Schedule-II of the notification, Govt. has mentioned Chapter No. against serial no.35, 36, 198 & 199 only whereas Heading No. and Sub-heading no. exist against remaining serial nos. for the purpose of levy of 18 % GST.

[Sadanand Bulbule]

Dear all

Under indirect tax regime (Sales Tax Act or VAT Act or GST Act) since 1957, for the purpose of determining rate of tax or tax exemption specific notification with specified description of goods always beats the general notification. One statute cannot dominate another statute. But it can help calrify the legal position. Law is well settled in this regard.

I shall continue later.

[Sadanand Bulbule]

"Water will be boiled to steam.Steam is cooled using condensers to get distilled water.If this is repeated we get double and triple distilled water.Water contains many minerals like Calcium, Magnesium, Iron and many such minerals.These are removed using special chemicals called " Resins".The out coming water almost chemically neutral is DM water.Both distilled and DM water, strictly speaking are unfit for drinking."

(Courtesy: My brother Dr. Keshav Bulbule, M.Sc, Ph. D)

To be continued...

[Shilpi Jain]

If there is no entry in the rate notification that matches for distilled water classification then you will have to pay GST @ 18% under the residual entry 639 in sch II of rate notification.

[Sadanand Bulbule]

For interpretation of notification, refer the following:

2026 (7) TMI 448 - MADHYA PRADES HIGH COURT - Sonali Soya Pvt. Ltd. And Others Versus State of Madhya Pradesh And Others

AI Summary

GST rate for distilled water depends on the exact notification wording, not merely the tariff heading.
GST rate for distilled or demineralised water under HSN 28530010 depends on the exact wording of the applicable rate notification entry. The discussion notes that classification under Heading 2853 may be clear, but a concessional rate cannot be automatically extended if the notification specifically refers only to compressed air or otherwise restricts the description. Where no specific entry covers distilled water, the residual entry may apply, so the notification text must be checked carefully.