Learn everything there is to know about GST on water & water based products and HSN codes for it.
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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.
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
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 |
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% |
GST Articles
- GST Penalties
- GST on Labour Charges
- GST on Gold Jewellery
- GST on Cars
- GST on Transportations
- GST on Restaurant
- GST on Clothes
- GST on Electronics
- GST on Mobiles
- GST on Healthcare
- GST on Education
- GST on E-commerce
- GST on Agricultural Products
- GST on Construction Materials
- GST on Food Grains
- GST on Dairy Products
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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