The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST is leviable on “Tertiary Treated Water” supplied to Maharashtra State Electricity Generating Co. Ltd. (MAHAGENCO).
The applicant, M/s Nagpur Waste Water Management Private Limited is a Private Limited Company registered under CGST Act and Maharashtra Goods and Service Tax Act, 2017 w.ef. 01.07.2017. Nagpur Municipal Corporation (NMC) is constituted under the city of Nagpur Corporation Act, 1948 Therefore. NMC is “Local Authority”. The NMC is required to provide the services of management of the sewage system within the city of Nagpur. NMC. in order to manage the sewage system of Nagpur city and to treat the sewage water generated in Nagpur City, has decided to set up and operate the Sewage Treatment Plant (STP) located at Bhandewadi. Nagpur. NMC has appointed the applicant, under PPP contract basis, for treatment of sewage water. The applicant is therefore awarded a contract to set up and operate the Sewage Treatment Plant (STP) located at Bhandewadi. Nagpur on Build Operate and Transfer basis (BOT basis).
The applicant has sought the advance ruling on the issue of whether GST is applicable on the “Tertiary Treated Water” supplied by the applicant to Maharashtra State Electricity Generating Co. Ltd. and if applicable at what rate.
The two member bench of Rajiv Mangoo and T.R.Ramnani ruled that the term ‘waters’ is specifically prescribed for the levy of taxes under Entry No.24 of schedule rates. Eventually, we conclude and hold that the purified “Tertiary treated water” is covered under Entry No. 24 and 18% GST is applicable on supply of “Tertiary Treated Water”.
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