ZLD Treated Water Would Fall Under Chapter 2201 and Taxable at 18% Under GST | AAR

Case Details: Authority for Advance Rulings Gujarat Gujarat Eco Textile Park Ltd., In re - [2024] 163 taxmann.com 353 (AAR - GUJARAT)

Judiciary and Counsel Details

• Milind Kavatkar & Amit Kumar Mishra, Member
• Hitesh Mundra, Ms Khushboo Kundalia & Anil Lamboria, CA’s for the Applicant.

Facts of the Case

The applicant was engaged in establishing Common Effluent Treatment Plant (CETP) for collection, treatment & disposal of waste water (effluent) generated from the industries. The effluent treated by CETP would be further processed through ZLD plant and supplied as treated water (RO) to industries for their manufacturing process. It filed an application for advance ruling to determine the taxability of treated water (RO) obtained from ZLD plant.

AAR Held

The Authority for Advance Ruling noted that the treated water obtained after undergoing the process through CETP and thereafter through ZLD plant would be classifiable under Chapter 2201. Therefore, it was held that ZLD treated water (RO) obtained from ZLD plant would not be eligible for exemption from payment of GST and taxable at 18% by virtue of Sr. No. 24 of Schedule-III of Notification No. 01/2017-CT(R) dated 28.6.2017.