18% GST Applicable On ZlD Treated Water: AAR

The Gujarat Authority of Advance Ruling (AAR) ruled that 18% GST applies to Zero Liquid Discharge (ZLD) treated water. The bench noted that water from the Common Effluent Treatment Plant (CETP) processed through ultrafiltration and reverse osmosis has minimal dissolved minerals and chemicals, making it "de-mineralized water" and thus not exempt from GST. \r

The AAR emphasized that GST exemptions apply to water typically consumed by the public, not commercially sold types like aerated, mineral, distilled, medicinal, ionic, battery, and de-mineralized water. The treated water from ZLD, used in industrial processes, falls under Chapter 2201 and is subject to 18% GST.