New GST on Water Tanker Supply in India
In many parts of India, water tanker services are a daily necessity. Whether it’s for residential, commercial, or industrial use, tankers play a key role in delivering water where municipal supply falls short. But is Goods and Services Tax (GST) applicable on this essential service? This blog breaks down the rules around gst on water tanker supply, when it’s taxable, and when it’s exempt.
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New GST Rate on Water Tanker Services in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for different water supply services (no compensation cess).
Water Tanker Service Taxable Under New GST?
| Water Type | New GST Rate |
|---|---|
| Drinking water (non-branded) | ❌ Exempt |
| Non-potable water (for construction, cleaning, etc.) | 18% |
| Branded packaged drinking water | 18% |
| Ice or chilled water in tankers | 18% |
Is Water Tanker Service Taxable Under GST?
| Water Type | GST Applicability |
|---|---|
| Drinking water (non-branded) | ❌ Exempt |
| Non-potable water (for construction, cleaning, etc.) | ✅ Taxable at 18% |
| Branded packaged drinking water | ✅ Taxable at 18% |
| Ice or chilled water in tankers | ✅ Taxable at 18% |
Old GST Rate on Water Tankers
(Old GST Rates – Applicable Until 21st September)
| Service | GST Rate | HSN Code |
|---|---|---|
| Drinking water tanker (non-branded) | Exempt | 2201 |
| Non-potable water tanker | 18% | 2201 |
| Packaged/branded water delivery via tanker | 18% | 2202 |
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Key Distinction: Potable vs Non-Potable Water
- Potable water: Safe for drinking and human consumption. GST exempt if not branded or bottled.
- Non-potable water: Used for washing, construction, or industrial applications. GST @ 18% applies.
This distinction is important when calculating gst on water tanker billing, especially for builders, commercial users, and industrial plants.
Also Know About – Water Supply SAC Code
GST on Water Tanker Services to Builders and Companies
- Applicable when supplying water for construction, commercial, or factory use
- GST registration mandatory if turnover exceeds ₹20 lakh
- Must charge 18% GST using HSN Code 2201 or 2202
- File monthly or quarterly GST returns regularly
GST Exemption: When It Applies
| Water Usage | GST Applicable? | Remarks |
|---|---|---|
| Residential drinking water supply via tanker | ❌ No | Unbranded, non-packaged drinking water |
| Packaged drinking water (Bisleri, etc.) | ✅ Yes, 18% | GST applies even if sold via tanker |
| Tanker water for factory cooling use | ✅ Yes, 18% | Considered industrial use |
Understanding the gst on water tanker supply ensures compliance and correct invoicing for both small vendors and large-scale suppliers serving industrial and residential areas.
