GST on providing Treated water to public in villages

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sasank

Chartered Accountant

89 Points Joined April 2014

Dear Sir/Madam

Greetings for the day.....

Please find the below brief details of Water Project taken up by one NGO

"NGO set up Water Treatment plants and provide the treated water ( a process that may involve filtration, UV or ozone treatment, reverse osmosis that fit for human consumption ) for public consumption on nominal charge in water scarcity villages."

Doubt 1:
GST rate applied on Treated water provided in sealed container to public ?
Whether this Treatment can be called as Purification/Distillation ?

Doubt 2:
What is the GST rate applied when NGO provide treated water to public for consumption in villages, where the people bring their own vessels( such as can,tin,bottles etc..)?

Please provide your opinion, Thanks in Advance.

Replies (2)

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

As per Notification 12/2017 CT (R) Services provided by charitable trust registered under section 12AA of Income Tax, 1961 is EXEMPTED.

Charitable activities have been defined under that notification. 'Charitable activities’ means the activities relating to:
Public health by way of
Care and counseling of
Terminally ill persons or persons with severe physical or mental disability;
Persons inflicted with HIV or AIDS;
Person addicted to a dependence forming substance such as narcotics, drugs or alcohol; or
Public awareness of preventive health, family planning or prevention of HIV infection;
Advancement of religion, spirituality of yoga
Advancement of education programs or skill development relating to,-
Abandoned, orphaned or homeless children
Physically or mentally abused and traumatized persons
Prisoner, or
Persons over the age of 65 years residing in rural areas.
Preservation of environment including watershed, forests, and wildlife.
Exempted from the GST