Whether GST is applicable on supply of safe drinking water for public purpose?


Quick Summary
The Tamil Nadu Authority for Advance Ruling has considered whether Goods and Services Tax (GST) is applicable on the supply of safe drinking water for public purposes. The case specifically involved the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) and their procurement of water. The ruling clarifies the tax implications for such essential public services.

Court :
Tamilnadu AAR

Brief :
Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling,Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.

Citation :
ORDER No. 03/AAR/2021 DATED: 26.02.2021

AUTHORITY FOR ADVANCE RULING, TAMILNADU
INTEGRATED COMMERCIAL TAXES OFFICE COMPLEX, DOOR N0.32,
5TH FLOOR, ROOM NO. 503, ELEPHANT GATE BRIDGE ROAD,
CHENNAI - 600 003.
PROCEEDINGS OF THE AUTHORITY FOR ADVANCE RULING U/s.98 OF THE
GOODS AND SERVICES TAX ACT, 2017.
Members present are:

1. Thiru Senthilvelavan B., I.RS, Member/ Additional Commissioner, Office of the Principal Chief Commissioner of GST & Central Excise, Chennai -34.

2. Thiru KurinjiSelvaan V.S., M.Sc., (Agri.), M.B.A., Member/Joint Commissioner (ST) Authority for Advance Ruling, Tamil Nadu, Chennai-600 003. ORDER No. 03/AAR/2021 DATED: 26.02.2021

Note: Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling,Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.

At the outset, we would like to make it clear that the provisions of boththe Central Goods and Service Tax Act and the Tamil Nadu Goods andService Tax Act are the same except for certain provisions. Therefore,unless a mention is specifically made to such dissimilar provisions, areference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. 

M/s. Chennai Metropolitan Water Supply and Sewerage Board , (hereinafter calledthe Applicant) is a governmental authority Providing drinking water and off-take of sewerage in the Chennai Metropolitan area. They are registered under GST with GSTIN. 33AAALM0037B1ZV. The applicant has sought Advance Ruling on:

Whether GST is applicable on supply of safe drinking water for public purpose by Chennai Water Desalination Plant Limited (CWDL) to Chennai Metrowater Supply and Sewerage Board (CMWSSB).

The Applicant has submitted the copy of application in Form GST ARA - 01 andalso submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.

To know more in details find the aattachment file
 

FAQ :

The Advance Ruling addresses whether GST is applicable on the supply of safe drinking water provided for public purposes.

The applicant is the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB), a governmental authority responsible for providing drinking water and sewerage services in the Chennai Metropolitan area.

The ruling considered the supply of safe drinking water by Chennai Water Desalination Plant Limited (CWDL) to the Chennai Metrowater Supply and Sewerage Board (CMWSSB) for public purposes.

Yes, the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) is registered under GST.

 

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