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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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% |
GST Rate on Water Tankers
| 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.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions (FAQs)
- What is the GST on water tanker services in India?GST is exempt on drinking water (non-branded), but 18% applies to non-potable water and branded supplies.
- Is GST applicable on municipal water supplied through tankers?No. Municipal or government-supplied water is exempt from GST.
- What if the water is delivered to a school or residential complex?If it’s unbranded drinking water, GST is not applicable.
- What if I supply water for construction purposes?GST at 18% applies to non-potable tanker water used in construction.
- Do I need to register for GST if I only supply exempt water?No. If you supply only GST-exempt goods, GST registration is not required, unless your business deals with both taxable and exempt supplies.
