Reimbursement of Water Tax

The corporation is supplying water to the promoter and charging GST. The promoter is paying price of water plus GST to the Corporation. This amount of GST becomes cost to the promoter. Now the promoter supplies water and collects the charges from the residents along with GST. The promoter is making a supply coupled with consideration (charged paid by the residents), therefore  such supply should be taxed under GST. Every supply falling within section 7 (scope of supply pl refer to section 7 of CGST Act) is taxable unless exempted. Section 9 of CGST Act provides for charging of GST on every supply on the value determined under section 15 of the same Act. The promoter is required to collect GST from the individual residents and deposit the same with the Govt.