AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (7) TMI 1605
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....g RO water plants. The company is also engaged in manufacture/assemble RO water plants, water treatment plants and develop technologies for water purifications. It also manufactures and import RO plants spares and undertake servicing, job work/repairs of all type of RO water plants/water treatment plants and water purifiers." 2.2 Business process of selling purified water as submitted by the applicant :- At present the company is engaged in manufacture/assemble RO water plants but the company has some proposed business activity for which they require some clarity. The company will purify water using RO and UV technology and sell the purified water in glass (without seal or lid) and in bottles. For selling of water, the company purchase containers including bottles and glasses. The company will sell purified water to the Customers on Railway station/ Villages. For this purpose the company will set up water stations at the railway platform and Water ATM at the villages to supply purified water. The customers can fill the water in the containers carried by them only. But in some cases where the customer doesn't carry anything with them the company shall provide bottle a....
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....Description of Goods 24 2201 Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured. 1.2 Provisions of Notification No 2/2017 - Central Tax (Rate) dated 28th June 2017 reads as under:- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act; 2017 (12 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts intra-State supplies of goods, the description of which is specified in column (3) of the Schedule appended to this notification, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedule, from the whole of the central tax leviable thereon under section 9 of the Central Good and Services Tax Act, 2017 (12 of 2017). Sr. No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 99 2201 Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, demineralized and water sold in sealed container] 2.5 Th....
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....mpt from GST. 2.8 Question No. 2:- Where applicant is selling water in containers whether selling of container and water is composite supply? Provisions of CGST Act. 2017 for Composite SUPPLY:- Section 2 (30) of CGST Act, 2017 and Illustration as given in the Act:- "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration. Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply; Further Section 8 of The CGST Act, 2017 deals with taxability of composite or a mixed supply, which reads as under:- The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:- (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; 2.9 Understanding and Interpretat....
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....ters, not containing added sugar or other sweetening matter nor flavored and supplied in sealed container is taxable. Hence as per our view, if the water is supplied not in sealed container, i.e. in Glass or in any utensil without any seal, irrespective of whether such water supplied is artificial mineral water and aerated or purified or whatever, it does not attract GST. ii) Hence, applicant has submitted in the Annexures that, as per the Notification No. 01/2017 Central Tax (Rate) the water, including natural or artificial mineral waters and aerated waters, is taxable at the rate of 18% i.e. CGST @ 9% and SGST @ 9%. But exemption notification i.e. Notification No. 02/2017 - Central Tax (Rate) provides for exemption of normal water, aerated water, mineral water, purified water, distilled water, medicinal water, ionic water, battery water, de-mineralized water if they are sold in non-sealed container; that the clarifications given in respect of certain goods in 28th GST Council meeting held on 21st July 2018, Para VII of such press release was with regards to Clarifications/amendments as regards applicability of GST rate in respect of certain goods recommended by GST Council. Poin....
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....exempt. 1.3 Prayer Applicant prays the following: * In relation to Question 1, kindly pronounce the ruling after considering the clarification that the GST Council has given in 28th GST Council meeting dated 21st July 2018. 2.11 Press Release Dated 21.07.2018 (Annexure A) PRESS RELEASE ON GST RATE ON GOODS AS RECOMMENDED BY THE GST COUNCIL IN ITS 28th MEETING HELD ON 21.07.2018. I. GST rates reduction on 28% items: .....: ........ ....... Vii Clarifications/amendments as regards applicability of GST rate in respect of certain goods recommended by GST Council which inter-alia includes: ❖ ...... ❖ Water supplied for public purposes (other than in sealed containers) does not attract GST. ❖ ....... (This note presents the decision of the GST Council in simple language for ease of understanding which would be given effect to through Gazette notifications/circulars which shall have force of law)" 3. The Central Goods and Services Tax, Rajkot Commissionerate, vide letter dated 21.03.2018 submitted the point wise reply regarding the queries raised by applicant M/s Aqua Care(Surat) RO Technologies Private Limited. 3.1 The point wise reply is s....
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....has erred in interpretation as the description of Goods against Sr. No. 99 ( Chapter Heading no. 2201) of Notification 02/2017- Central Tax (Rate) dated 28.06.2017 clearly mentions in column 3 as the Water (other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container). Hence the exemption is not applicable to the goods manufactured by the applicant and the applicant is liable to pay full rate of Tax i.e. 18% (9% CGST & 9% SGST). Further, on going through the business process of selling purified water as per Annexure-1 attached with the said letter, the description of Goods mentioned in Notification No. 02/2017 Central Tax (Rate), dated 28.06.2017 is illustrative and exhaustive. In Annexure -I under heading business process of selling purified water, the applicant stated as, "The applicant will sell purified water to the customers on Railway Station/Villages. For the purpose the applicant will set up water stations at the railway platform and water ATM at the villages to supply purified water." It is clear that applicant will supply purified water which is not exempted under Notification No. 2/2017 Central Tax. (3) ....
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..... Therefore, it is clarified that supply of drinking water for public purposes, if it is not supplied in a sealed container, is exempt from GST." iv) The applicant assumes that any type of water, if sold in sealed container is not eligible for benefit under Sr. No. 99 of Notification No. 02/2017 -Central Tax(Rate) dated 28-06-2017. Vice versa if it is sold in non-sealed container it is eligible for benefit under Sr. No. 99 of Notification no. 02/2017-Central Tax(Rate) dated 28-06-2017. This understanding of the applicant is not supported by the plain meaning of the Sr. No. 99 of the Notification No. 02/2017-Central Tax(Rate) dated 28-06-2017. If that would be the intention of the legislature, the legislature would have simply stated as "water (Other than water sold in sealed container)" In that case the words "aerated, mineral, purified, distilled, medicinal, ionic, battery and de-mineralized" would have been redundant. It is a settled principle of interpretation that there are no redundant words in law. The ordinary meaning of the Sr. No. 99 of Notification No. 02/2017-Central Tax(Rate) dated 28-06-2017 is, in our opinion, as follows : Water is exempt other than the following ....