"Black Mineral Water" liable to 5% GST: AAR rules for supply of Bottled Water [Read Order]

The Authority for Advance Ruling (AAR) held in a case concerning supply of bottled water that “black mineral water” was liable to 5% GST.

The applicant, M/s. Oxyhydra Beverages Pvt. Ltd., manufactured and supplied bottled water under the brand ALVA. The product is water with added minerals but it does not contain any added flavouring, added sugar, sweetening matter, preservatives or any other additives.

The applicant placed reliance on the lab report and clarified that classification should be done under HSN heading of mineral waters/mineral water. The authorised representative on behalf of the applicant also submitted flow charts showing processes carried out in Alkaline Water Plant and Black Alkaline Water Plant.

AAR referred to the First Schedule to the Customs Tariff Act, 1975 to note that beverages are covered under Chapter 22 and drinking water/mineral water would fall under the said Chapter. The authority also found information available online regarding the appellant’s active company engaged in the manufacturing and supply of black alkaline water.

After going through Notification No.09/2025-Central Tax (Rate), it was found that the product would be covered under heading 2201 which reads as “Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured” wherein the applicable GST rate is 5%. Hence, the “Black Mineral Water” would be classificable under Entry No. 146 of Schedule 1 to the said Notification.

The bench of Sushma Vora (SGST Member) and Vishal Malani (CGST Member) thus held that the product would be liable to 5% GST and specified the correct classification of the black mineral water with brand name “ALVA”.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates