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The GST rates for water and Water-based products in India differ depending on the type of product. These products, ranging from simple water to Water-based beverages, are subject to different tax slabs.
Understanding these rates is crucial for consumers and businesses alike, as it affects the price and availability of these products in the market.
Water is an essential resource for human survival, and it plays a vital role in daily life. The GST levied on water and Water-based products impacts the cost of these items, which can influence affordability and access to basic drinking water.
By maintaining a low GST rate on potable water, the government ensures that essential water remains affordable, while higher taxes on sweetened and flavoured beverages help regulate non-essential items in the market.
Water and Water-based products in India are generally classified into two categories: potable water and non-potable water.
Potable water is safe for immediate consumption, while non-potable water is not suitable for consumption without treatment.
The GST rate on potable water is 0% (for non-sealed water), ensuring its affordability for daily consumption. However, non-potable water and certain Water-based products fall under higher GST rates based on their classification.
The following products are exempt from GST:
Water that is not distilled, mineral, aerated, purified, demineralized, ionic, medicinal, or battery water
Water sold in sealed containers
Non-alcoholic toddy
Neera (date and palm neera)
Non-branded tender coconut water (not packaged)
The following products will attract 5% GST:
Ice and snow meant for consumption
The following products will attract 12% GST:
Drinking water packaged in 20-litre cans
Branded and bottled tender coconut water
Aerated water
Lime juice/lemonade
The following products will attract 18% GST:
Natural and artificial mineral water
Aerated water (without any sugar, sweeteners, or flavourings)
Non-alcoholic beverages (excluding tender coconut water)
The following products will attract 28% GST:
All other products containing added sugar, sweeteners, or flavouring agents (e.g., sweetened beverages, flavoured water)
Here are the GST rates applicable to various types of water and Water-based products:
| Product | GST Rate |
|---|---|
Water (other than aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized, and water sold in sealed containers) |
0% |
Drinking water packed in 20-litre bottles |
12% |
Natural or artificial mineral waters and aerated waters (not containing added sugar or other sweetening matter nor flavoured, other than drinking water packed in 20-litre bottles) |
18% |
Other non-alcoholic beverages (other than tender coconut water and caffeinated beverages) |
18% |
Tender coconut water (pre-packaged and labelled) |
12% |
Tender coconut water (other than pre-packaged and labelled) |
0% |
Water-based beverages containing added sugar or other sweetening matter or flavoured |
28% |
Disclaimer: The GST rates listed above are for reference purposes only and may be subject to change based on government updates or amendments. The list does not cover all products or potential exemptions, and certain items may attract additional Cess. For the most up-to-date and comprehensive information, please refer to the official GST portal
The GST rates for water and Water-based products in India vary depending on the type of product. While the base rate for many water-related items hovers around 0% for essential potable water, there are exceptions where higher GST rates apply.
For example:
Packaged drinking water attracts a GST of 12%
Aerated and flavoured Water-based drinks fall under the 28% GST category
To better understand how GST is calculated for water and Water-based products, it's essential to remember that the GST rates typically depend on whether the product is deemed essential or luxury.
Essential products such as basic drinking water or tender coconut water without added sweeteners are subject to 0% or 12% GST, depending on the packaging and type
Luxury products (e.g., flavoured, sweetened beverages) generally attract the 28% GST rate
Yes, water that is not supplied in sealed containers is exempt from GST, as well as non-branded tender coconut water and natural, non-alcoholic beverages like neera.
The GST rate on water varies depending on the type of product:
0% for non-sealed water and non-branded tender coconut water
12% for drinking water packaged in 20-litre cans
18% for natural and artificial mineral waters
28% for sweetened or flavoured Water-based beverages
Water, particularly treated and packaged water, incurs GST because the government invests in the infrastructure and treatment plants necessary to ensure safe drinking water. Taxes help maintain and upgrade these facilities.
No, Input Tax Credit (ITC) is not available on water, as water is considered a basic, essential commodity.
Non-alcoholic beverages (excluding tender coconut water) fall under the 18% GST category. Products containing sugar, sweeteners, or flavouring agents are taxed at 28%.
12% GST applies to branded and packaged tender coconut water
0% GST applies to non-branded, non-packaged tender coconut water
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