Supply and Transportation of Waste / Sewage Water – Rate of GST Applicable

Dear Sir,

A bill received from the Contractor for Supply & transportation of STP Water. The contractor  is asking 18% GST for the work (involving service i.e. transportation).

Please clarify, what percentage of GST to be given.


STP Water as used in construction site for construction is covered under chapter 22 (HSN- 22011010) and the rate is NIL under the heading 

“Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container]

As per section-8 of CGST Act, 2017 “Tax Liability of Composite and Mixed Supply”

“ The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:-

(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and

(b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.”

The present case is the case of Composite supply, where the supply of STP Water is Principle supply, Hence the contractor should charge NIL rate on invoice.

CA Ankit Gulgulia (Jain) | +91-9811653975

Related Tags CGSTQ&A 

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