TaxTMI 
TaxTMI 
2023 (1) TMI 231
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....nded), Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and -water sold in sealed container] are exempt from GST. The water obtained from CETP is not "purified water", and is thus, eligible for exemption from GST under SI. No. 99 of Notification 02/2017 - Integrated Tax (Rate) dated 28.06.2017. 4. The applicant has submitted that the treated water is water other than aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container, the only question remain is whether the treated water can be said as purified water. 5. It is submitted by the applicant that the term "purified" is not defined under the CGST Act, 2017, accordingly, referred the dictionary meaning of the term "purified". As per the website Dictionary.com, the term "purify" means:- 1. to make pure; free from anything that debases, pollutes, adulterates, or contaminates; 2. to free from foreign, extraneous, or objectionable elements; As per the Cambridge Dictionary, the term "purify" means:- 1. to remove bad substances from something to make it pure 5.1 Thus, as per the dictionar....
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....tery, de-mineralized and water sold in sealed container' mentioned in the exclusion clause of the entry under consideration as the said CETP treated water can be readily replaced by municipal water. 11. The applicant submits that all these groups of specific water mentioned under the exclusion clause of the relevant entry are supplied in the packaged form, i.e., in the sealed container, in order to preserve their characteristics and specificity, while the same is not the case with the impugned product, i.e., CETP treated water, which are supplied through pipelines without any such concerns. Thus, the term "purified", mentioned under the exemption clause of the relevant entry, will definitely not include the CETP treated water. Hence, applicant is of the view that the impugned product, i.e., CETP treated water, is rightfully eligible for exemption under entry at SI. No. 99 of the exemption notification no. 02/2017-C.T. (Rate) dated 28.06.2017. 12. The applicant submits that it has never been the intention of the Government, i.e., either Central Government or State Government, to levy any indirect tax on water of general purposes. Even under the erstwhile indirect tax regim....
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.... water, falling under heading 2201, is exempt under GST. Further, to clarify the issue, the word 'purified' is being omitted from the above-mentioned entry vide notification No. 7/2022-Central Tax (Rate), dated the 13th of July, 2022. 16. The applicant submits that in their opinion the supply made by them is covered under exemption and is not liable to tax. 17. Question on which Advance Ruling sought: 1. Whether 'Treated Water' obtained from CETP (classifiable under Chapter 2201) will be eligible for exemption from GST by virtue of SI. No. 99 of the Exemption Notification No. 02/2017- Integrated Tax (Rate), dated 28-6-2017 (as amended) as 'Water (other than aerated, mineral, purified, distilled, medical, ionic, battery, demineralized and water sold in sealed container)'? or 2. Whether 'Treated Water' obtained from CETP (classifiable under Chapter 2201) is taxable at 18 per cent by virtue of SI. No. 24 of Schedule - III of Notification No. 01/2017- Integrated Tax (Rate), dated 28-6-2017 (as amended) as 'Waters, including natural or artificial mineral waters, and aerated waters, not containing added sugar or other sweetening matter nor ....
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....n a tank and allow ample airflow. This airflow encourages the growth of bacteria that is capable of quickly breaking down the waste in the water. 20.4 In this stage, most of the waste in the water is separated by the bacteria and the water is nearly safe enough to release into the environment. 20.5 In the last stage of a sewage treatment plant, the wastewater is screened, so the remaining solid in the wastewater can be separated. After this stage, the water is safe to be released into water bodies. 20.6 If all the stages work perfectly, this treated sewage will not burden the environment and clog our water bodies. Function of Effluent treatment plants (ETP) 21. Effluent treatment plants work in several stages to remove all sorts of impurities from industrial waste water. They can screen out solid waste and dust, disinfect the water and purify it on a molecular level. 21.1 This treated water is safe to be released into water bodies without disrupting the ecological balance. 21.2 In the primary stage of an effluent treatment plant, mostly solid and visible waste is removed. Dust and debris are also removed in the first stage. Screenings are done to separate solid....
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.... by various AAR for taxing the treated water was that the same may be classified as purified water. Vide the notification, the word "Purified" has been deleted. Also the STP and ETP both are plant for removing impurities from the polluted water. 23. The applicant has submitted letter dated 2-11-22 of Sr. Envr. Engineer wherein following details have been mentioned and same are reproduced as under : Table : Comparison Parameter Unit Industrial Waste water at CETP Domestic Sewage at STP PH 6.5-8.0 7-7.5 Total Dissolved Solids Mg/1 2000-400 500-1000 Total Suspended Solids Mg/1 300-500 300-500 COD Mg/1 900-1500 40-600 BOD3 Mg/1 350-450 250-300 Chloride Mg/1 700-800 150-200 Ammonical Nitrogen Mg/1 20-50 <20 Oil & Grease Mg/1 30-50 10-30 FINDINGS: 24. We have considered the submissions made by the Applicant in their application for advance ruling as well as the additional submissions made by the applicant before this authority. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant's interpret....
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....from the above entry that specifically 'Water' is eligible for exemption from payment of GST and other types of water i.e. aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container are not covered under entry no. 99 and liable to payment of applicable GST. 28.3 We find that the intention of the legislature to exempt the water was very clear that any type of water which is usually consumed/drink by the public at large of this country should not be taxed. To meet such objective GST Council has provided exemption under the Entry No.99 of Not. No. 2/2017-CT (Rate) to Water which is free from all types of impurities supplied in cities and villages across the country either through tap or tanker, water cooler and water tap installed at various places across the country. Whereas aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container is not eligible for exemption from payment of GST under the said entry. This clearly shows the intention of the legislature that any type of water which are being sold in terms of commercial purpose have been kept out of the purview of exemption as pro....
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....ch types of water contains minerals and in day to day life we prefer to drink or use mineral water because it is useful for the health of man- kind. Even in market Mineral water is sold in bottle and public at large prefer to drink such mineral water if potable water is not available. In general mineral water does not undergo chemical processing and it contains high quantities of minerals, especially magnesium, calcium and sodium. (iii) Distilled water: Dictionary.com has defined the terms as water from which . impurities, as dissolved salts and colloidal particles, have been removed by one or more process of distillation; chemically pure water. As per Wikipedia, this type of water is water that has been boiled into vapor and condensed back into liquid in a separate container. Impurities in the original water that do not boil below or near the boiling point of water remain in the original container. Thus distilled water is a type of purified water. (iv) Medicinal water: Medicinal waters are natural mineral waters with proven therapeutical effect. Their therapeutical application in treating certain diseases has been identified using strict medical tests and thus of....
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....cular level. Thus, by undergoing the treatment of effluent through all such process in CETP de-mineralized water is obtained. 28.9 It can be concluded that after undergoing out all the process treated water obtained from CETP have micro amount of dissolved minerals and chemical and virtually free from all types of toxic materials. This treated water is used in the various industries viz. Pharmaceuticals, chemicals and leather industries for their manufacturing related process. Looking to the presence of small amount of metal and water obtained after treatment from CETP is covered under 'de-mineralize water'. Hence, we are of the view that the treated water obtained from CETP is not eligible for exemption under Sr. No. 99 of Notification No. 12/2017-CT (Rate) dated 28-6-2017. 28.10 We hold that the 'Treated Water' obtained from CETP (classifiable under Chapter 2201) is taxable at 18 per cent by virtue of SI. No. 24 of Schedule - III of Notification No. 01/2017- Integrated Tax (Rate), dated 28-6-2017 (as amended) as 'Waters, including natural or artificial mineral waters, and aerated waters, not containing added sugar or other sweetening matter nor flavoured....
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....Central Tax (Rate), dated 28-6-2017 - Held, yes - Whether water recovered, which is demineralized water for industrial use is classifiable under Heading No. 2201 as waters described under SI. No. 24 of Annexure-III of Notification No. 01/2017- Central Tax (Rate), dated 28-6-2017 and is taxable at 18 per cent GST - Held, yes [Paras 9.2 and 10] 30.1 The fact and issue of the above Advance Ruling are similar to the present applicant, as such the applicant in the instant case is also Common Effluent Treatment Plant engaged in collecting, conveying, treating and disposing of effluents from its member dyeing/bleaching units and obtaining water by process of reverse osmosis. This treated water is not use in drinking purpose by public at large but supplied to Industries for their use. 31. We, hereby pass the Ruling: RULING 1. 'Treated Water' obtained from CETP (classifiable under Chapter 2201) is not eligible for exemption from payment of Tax by virtue of SI. No. 99 of the Exemption Notification No. 02/2017- CT (Rate) dated 28-6-2017 (as amended) and SI. No. 99 of the Exemption Notification No. 02/2017- Integrated Tax (Rate), dated 28-6-2017 (as amended). 2. 'Tre....