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ITC AVAILABLE ON DRINKING WATER

Mukesh Parmar (29 Points)

14 September 2020

hi guys I want to know about ITC on drinking water in office for employees can we claim ITC on drinking water?

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Rashmi Dalmia (67 Points)
Replied 14 September 2020

Section 17(5)(b) of the CGST Act restricts the entitlement of ITC on beverages.. Based on a perusal of various judicial precedents and lexicons, drinking water does not constitute a beverage. Hence, ITC on drinking water is available

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CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 14 September 2020

Yes agreed. Although only sealed water and the like is taxable (others being exempt)

The Hon. Supreme Court in the case of Hamdard (Wakf) Laboratories VS CCE, Meerut 1999 (113) E.L.T. 20 (S.C.) has observed that - “Beverages are liquids for drinking, other than water, it may be consumed neat or after dilution”

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