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What is the GST Rate for Water and Water Based Products in India

Water and water-based products attract a GST of 5%. This includes distilled water, mineral water, spring water and groundwater. Please note that these GST rates also apply to any water-based products and beverages that are at least 50% water based on volume. This can include lemonade, soda, etc. 

Why is the GST Rate for Water and Water Based Products in India Important

Water is one of the most important things needed for human survival and is hence, a crucial part of our day-to-day lives. The taxes, particularly GST levied on water affects the price and availability of water. The GST rate on water is a nominal 5%, which ensures that potable water is readily available at affordable prices

What are the Different Types of Water and Water Based Products in India

Water and water-based products are broadly classified into two categories - potable and non-potable water. Potable water is safe for immediate consumption whereas non-potable water is not fit for immediate consumption. The rate of GST on potable water is 18% whereas the rate of GST on non-potable water is 5%. 

1. Water and Water-based Products @ 0%

The following products will not attract any GST: 

  • Water that is not distilled,  mineral, aerated, purified, demineralized, ionic, medicinal, battery 

  • Water sold in sealed container

  • Non-alcoholic Toddy 

  • Neera (date and palm neera)

  • Non-branded tender coconut water (which is not packaged)

2. Water and Water-based products with 5% GST 

The following products will attract 5% GST: 

  • Ice and snow meant for consumption

3. GST on Water and related products @ 12% GST

The following products will attract 12% GST:

  • Drinking water, packaged in 20 litre cans

  • Branded and bottled tender coconut water

  • Aerated water

  • Lime juice/lemonade

4. Water and Related Products @ 18% GST

The following products will attract 18% GST:

  • Natural and artificial mineral water

  • Aerated water without any sugar, sweeteners or flavourings

  • Non-alcoholic beverages (excluding tender coconut water) 

5. GST Rate on Water and Related Products @28%

The following products will attract 28% GST:

  • All other products, that contain sugar, sweeteners or flavouring agents
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How to Calculate the GST Rate for Water and Water Based Products in India

As per existing GST guidelines, the rate of GST on water and water-based products is 5%. There are, however, a few exceptions to this rule - for example, the rate of GST on packaged water is 18% and the rate of GST on aerated and flavoured water-based drinks is 28%. 

 

A framework that will help you understand the GST rates better is understanding that the GST hovers around 12% for goods and services that are considered essential or necessary for survival. On the flip side of this, all goods and services that are considered to be luxury goods will typically attract a GST of 28%. 

HSN Code and GST Rate on Water as Well as Related Products

HSN Code

Products 

GST Rate

2101 

Water; deionised distilled or demineralised water in containers not more 250 litres

NIL

2102 

Water; mineral water as well as aerated water, which does not contain sweeteners or flavourings

NIL

2103 

Sauces and similar preparations; mixed seasonings and mixed condiments; mustard meal and flour; ketchup and other similar sauces; fish sauce; soy sauce; oyster sauce; mayonnaise; salad dressings; edible ice, whether or not containing alcohol

18%

2104

Broths, soups and other bases; homogenised composite food preparations that have been put up for retail sale for dietetic purposes or as infant food, in containers of a net content not exceeding 250 gms 

18%

2105

Ice cream and edible ice, whether containing cocoa or not 

18%

FAQs for GST on Water

Are there any exemptions to the GST rate for water and water-based products?

Yes, water that is not supplied in sealed containers is exempt from GST.

What is the GST rate on water?

The GST rate on water and water-based products can range anywhere from 5% to 28%.

Why is water taxed?

The government spends a lot of money on treating and maintaining water plans, hence, water is taxed. 

Is ITC available on water?

No, ITC is not available on water. 

What is the GST rate for other beverages?

Non-alcoholic beverages (excluding tender coconut water) come under the 18% GST bracket. 

 

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Bajaj Finserv Direct Limited ("Bajaj Markets") offers to its customers, various financial products and services through its digital platform as a registered Investment Adviser with SEBI, registered Third-Party App Provider (UPI payments), and as DSA or Digital lending platform of its Partners. Further, Bajaj Markets also offers a marketplace e-commerce platform to facilitate transactions between customers and sellers on-boarded on the platform. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522 Investment Adviser, SEBI registration: INA000016083 (Validity - Aug 11, 2021 - Perpetual)
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