Levy of GST— In the instant case, the applicant has sought Advance Ruling on the following questions:

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

2. Ruling is sought for applicability of SI.No.99 of Notification 02/2017 for supply of water

The applicant has stated that they are processing sea water in to potable water through desalination and they supply to Chennai Metropolitan Water Supply and Sewerage Board for distribution to General Public.

The activity of the applicant is not services and is only sale simpliciter i.e., sale of potable water, obtained after the process of desalination of sea water. We find the product water to be falling under water  falling under HS code 2201 attracts NIL rate of GST.

Held that— 

1. Supply of desalinated water by the applicant to CMWSSB for distribution as safe drinking water to public falls under the entry at Sl.No.99 of Notification no.02/2017- Central Tax dated 28.06.2017 and attracts 'NIL' rate of GST.

2. Transaction of supply of safe drinking water by applicant to CMWSSB does not merit to be classified as 'services' and hence are not eligible for exemption under Sl.No.3 Of the Notification no.12/2017 dt. 28.06.2017.