Is GST applicable on supply of 20 lts water cans to customers in Telangana?

Queries 260 views 1 replies

We propose to start a business of drinking water supply in 20 liters cans (Non branded, without any brand) to customers with door delivery.  Hence would greatly appreciate if the knowledgeable friends can answer the queries as follows:

1.  Is GST applicable on supply of 20 lts drinking water cans to customers in Telangana?

2.  Will GST be payable on delivery of the above cans to customers, if yes, then at what rate?  

3.  If GST is payable on delivery of above cans, then can we split the cost of water cans and delivery charges and what would be the rates of both?

4.  Will there be any objection if delivery charges is more than the cost of the water cans?

5.  If we affix a sticker on the cans mentioning the supplier name and contact number, then will it be counted as branded or not?

Thanking all in anticipation. 

 

Replies (1)

Great questions! Here’s a detailed answer on GST applicability on supply of 20-liter drinking water cans in Telangana:


1. Is GST applicable on supply of 20 liters drinking water cans to customers in Telangana?

Yes, GST is applicable on the supply of packaged drinking water, including 20-liter cans, even if non-branded.

  • Drinking water supply through packaged cans is treated as supply of goods under GST.

  • As per GST law, supply of packaged drinking water is taxable.


2. Will GST be payable on delivery of the above cans to customers, and at what rate?

  • GST is applicable on the entire supply, including delivery charges if charged separately.

  • The rate of GST on packaged drinking water is 18% (as per the current GST rate schedule).

  • Delivery charges, if separately mentioned, will attract GST at the same rate as the goods supplied (here, 18%).


3. Can the cost of water cans and delivery charges be split, and what would be the rates of both?

  • Yes, you can split the cost of water cans and delivery charges in the invoice.

  • Both will attract GST at the same rate of 18%.

  • Delivery charges form part of the value of supply and attract GST at the same rate as goods supplied.


4. Will there be any objection if delivery charges are more than the cost of water cans?

  • No, there is no restriction on delivery charges being more or less than the cost of water cans.

  • However, the delivery charges must be reasonable and justifiable.

  • Both components will be taxed at 18%.


5. If a sticker is affixed on the cans mentioning supplier name and contact number, will it be considered branded?

  • A sticker with the supplier’s name and contact details does not necessarily make the product branded.

  • Brand implies a trade name or trademark.

  • Mere identification or supplier info on the packaging is considered standard practice and does not make it branded.

  • Hence, GST rate applicable remains the same (18%) whether branded or non-branded.


Summary Table

Query Answer
GST applicability on 20L drinking water cans Yes, GST applicable
GST rate on water cans 18%
GST on delivery charges Yes, 18% (same as water cans)
Split cost of cans and delivery Allowed; both taxed at 18%
Delivery charges > water cans cost Allowed, no objection
Sticker with supplier info = branded? No, not considered branded


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register