A composition dealer purchases floor cleaner liquid and dilutes it with mineral water before selling it. The question arises whether this process constitutes manufacturing. The consensus is that simply adding water does not qualify as manufacturing, as it doesn't create a new product from raw materials or components. This clarification is important for determining the correct GST rate, which for this scenario, appears to be 1%.
08 February 2023
Respected Sir, My Client is Composition Dealer , He Purchased Floor Cleaner liquid From Chemicals Manufacturing Company later he add Mineral Water in liquid ( e.g. 1 litter liquid in 20 litter water) and sale to Customers , No Machine used for this Process. My question is For My Client this is Manufacturing or not ?