GST on water takes a political twist

The Central Board of Indirect Taxes and Customs (CBIC) has denied Kharge’s claim and clarified in a social media post that water from the Ganga, or Gangajal, is used by households across the country for worshipping and as such items used for worship, or puja samagri, is exempt from GST.

“GST on puja samagri was discussed in detail in the 14th and 15th meetings of the GST Council held on 18 and 19 May 2017 and 3 June 2017, respectively, and decided to keep them in exempt list. Therefore, all these items have been exempt (from GST) since the introduction of GST,” the indirect tax body said in its statement.

A government official clarified that GST rates and exemptions are prescribed based on the recommendations of the GST Council, a constitutional body which comprises members from both the union and all state governments.

Also, there is no GST on water that does not fall in certain categories such as aerated, mineral, distilled, medicinal, ionic, battery, demineralized and water sold in sealed container, as per an order issued in 2017.

The official also said that drinking water packed in 20 litre bottles attracts 12% GST since 25 January 2018 while water including natural or artificial mineral water and aerated water that does not contain added sugar or sweetening matter nor is flavoured attracts 18% GST since the introduction of the new indirect tax regime in 2017.

Kharge alleged in his social media post that the burden on people because of tax on water from Ganga has not been thought about.

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Updated: 12 Oct 2023, 09:55 PM IST