GST on Water-based Products In India

Gst

The GST on water and various water / related products, including mineral water, carbonated water, heavy water, and non-alcoholic drinks, are introduced in Chapter 22 and Chapter 28 of the tariff on commodity tariffs of GST. As these chapters comprise a wide range of products, the GST rate in water products ranges from zero GST to the highest rate of 28%.

 

The following are fundamental details about water GST rates and various water-related items.

 

NIL GST Water and water-based products

 

The following products classified as water / water-based products have a zero GST rate:

 

  • water sold in a sealed container, distilled, Battery, purified, demineralized water, Ionic, mineral, medicinal, and excluded aerated.
  • Toddy without alcohol, along with neera including date and palm neera
  • Uncooked tender coconut water, which is not placed in a unit container

 

Water and water-based products with 5% GST

 

Relatively few water products/water derivatives have a GST rate of 5%. The main one is:

 

  • Ice and snow

GST in water and related products @ 12%

 

A range of water and water-based products are taxed at a GST rate of 12%. Some of the main ones are:

 

  • Drinking water, packaged in 20 l bottles.
  • Brand tender coconut water when placed in a bowl
  • Lemonade
  • Aerated water

 

GST rate of 18% (water and related products)

 

The GST in water and related products maybe 18% in some cases. The following are key examples of this:

 

Natural and artificial mineral water, and soda water without added sugar / other sweetening or flavoring agents.

Non-alcoholic beverages, except tender coconut water

GST rate in water and related products @ 28%

The GST in water/water-products can be as high as 28% as mentioned above. The following are fundamental examples of products with the highest GST rate:

 

All products, including carbonated water, with added sugar or other sweetening and flavoring agents.

HSN code and GST rate in water, as well as related products

 

The following table shows the HSN Code and the CGST / SGST / IGST water rates and the termination of compensation for various water and water-based products manufactured/supplied in India:

 

 

HSN Code Product Type IGST Percentage(%) CGST Percentage(%) SGST Percentage(%) GST Compensation percentage(%)
2201 Water, ionic, medicinal, water sold in a sealed container, battery, purified, excluded aerated, mineral and demineralized. 0 0 0
2201 Neera including the date, palm neera, and Non-alcoholic Toddy 0 0 0
2202 90 90 Non-branded tender coconut water, which is not put in a unit container 0 0 0
2201 90 10 Ice and snow 5 2.5 2.5
2845 Heavy water 5 2.5 2.5
2202 99 90 Brand tender coconut water when placed in a bowl 12 6 6
2201 Drinking water (20 Litre bottles) 12 6 6
28 Steam 12 6 6
2202 10 10 Aerated water 12
2202 10 20 Lemonade 12
2201 Soda water without added sugar / other sweetening or flavoring agents and Natural and artificial mineral water, 18 9 9
2202 91 00, 2202 99 90 Non-alcoholic beverages, except tender coconut water 18 9 9
2202 10 All products, including carbonated water, with added sugar or other sweetening and flavoring agents. 28 14 14
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