New GST on Water Tanker Supply in India
- GST on water tanker supply is generally Nil when ordinary water is supplied through tankers and falls under the exempt HSN 2201 entry.
- The water tanker HSN code is generally 2201 when the principal supply is water.
- Ordinary tanker water does not become taxable merely because it is supplied for construction, cleaning or industrial use.
- Mineral, distilled, medicinal, ionic, battery, de-mineralised water and water sold in sealed containers are excluded from the Nil-rated water category.
- Taxable water under HSN 2201: Mineral water and water sold in sealed containers generally attract 5% GST from 22 September 2025.
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.
Water Supply GST Not Applied Right?
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New GST Rate on Water Tanker Supply in India
The water tanker HSN code is generally HSN 2201 when the principal supply is water. The water tanker HSN code and GST rate depend on the type of water supplied and whether it falls within the GST exemption.
GST on Water Tanker Supply
| Water Type | Current GST Rate | Rate Before 22 Sep 2025 |
|---|---|---|
| Ordinary drinking water supplied through tanker, not in sealed containers | Nil | Nil |
| Ordinary non-potable water supplied through tanker | Nil | Nil |
| Drinking water packed in 20-litre sealed bottles | 5% | 12% |
| Other taxable mineral/sealed water under HSN 2201 | 5% | 18% |
| Ice and snow under HSN 2201 90 10 | 5% | 5% |
Water Type
Current GST Rate
Rate Before 22 Sep 2025
Water Type
Current GST Rate
Rate Before 22 Sep 2025
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Current GST Rate
Rate Before 22 Sep 2025
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Current GST Rate
Rate Before 22 Sep 2025
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Rate Before 22 Sep 2025
Is Water Tanker Service Taxable Under GST?
| Water Type | GST Applicability |
|---|---|
| Ordinary water supplied through tanker | Nil / Exempt |
| Ordinary water supplied for construction or cleaning | Nil / Exempt |
| Water sold in sealed containers under HSN 2201 | 5% GST |
| Mineral, distilled, ionic or de-mineralised water under HSN 2201 | 5% GST |
Water Type
GST Applicability
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Trip-Wise Billing Helps Avoid Collection Confusion
Key Distinction: Exempt vs Taxable Water
- Ordinary water supplied through tankers: Generally Nil-rated under HSN 2201, provided it is not mineral, purified, distilled, ionic, de-mineralised or sold in a sealed container.
- Taxable water under HSN 2201: Mineral, purified and water sold in sealed containers generally attracts 5% GST from 22 September 2025.
This distinction is important when calculating GST on water tanker billing, regardless of whether the water is supplied for residential, construction or industrial use.
Also Know About – Water Supply SAC Code
GST on Water Tanker Supply to Builders and Companies
- Ordinary tanker water does not become taxable merely because it is supplied to a builder, factory or commercial user.
- If the supplied water falls within the Nil-rated HSN 2201 entry, GST is Nil.
- Taxable water such as mineral or sealed-container water generally attracts 5% GST under the current rate.
- The applicable HSN and GST rate should be determined by the type of water supplied, not simply its end use.
GST Exemption: When It Applies
| Water Supply | GST Applicable? | Remarks |
|---|---|---|
| Residential drinking water supplied through tanker | Nil | Ordinary water not falling under excluded categories |
| Packaged/sealed drinking water | 5% | Taxable under HSN 2201 |
| Ordinary tanker water for construction | Nil | End use does not by itself make it taxable |
| Ordinary tanker water for factory cooling | Nil | Subject to the water meeting the Nil-rated HSN 2201 entry |
Water Supply
GST Applicable?
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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.
