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 water from the Common Effluent Treatment Plant (CETP), treated via ultrafiltration and reverse osmosis in the ZLD plant, contains minimal dissolved minerals and chemicals and is virtually toxin-free. \r

As it resembles 'de-mineralized water', it's not exempt from GST. While water for public consumption is exempt, aerated, mineral, distilled, medicinal, ionic, battery, de-mineralized, and water in sealed containers aren't. The AAR clarified that the supply of drinking water for public use, not in sealed containers, is GST-exempt. \r

Thus, 'treated water' from CETP and ZLD falls under Chapter 2201, taxed at 18% GST.