GST on Water: Packaged Drinking Water, Mineral Water & Aerated Water Rates

Updated: 3 June 2026 | GST Act 2017 | HSN Chapter 22

GST on water depends on form and packaging: 0% for tap/municipal/natural water; 5% for packaged water in containers >20 litres; 12% for packaged drinking water in sealed bottles/jars ≤20L; 18% for mineral water; 28% for aerated/flavoured water beverages.

12%

GST on standard packaged drinking water (≤20L bottles)
HSN 2201 — includes Bisleri, Kinley, Aquafina, and all branded sealed water bottles

GST Rate Table: All Types of Water in India

Type of Water	Description / Examples	HSN Code	GST Rate	Notes
Tap / River / Well Water	Natural, unpackaged water from any source	—	0% (Nil)	No supply — no GST applicable
Municipality Piped Water	Water supplied by local authority / municipality	9969	Exempt	Exempt under GST notification
Packaged Drinking Water ≤20L	Sealed bottles (250ml, 500ml, 1L, 2L, 5L, 20L jars)	2201	12%	Bisleri, Kinley, Aquafina etc.
Packaged Water >20L (Bulk Jars)	Large dispensers, bulk supply jars above 20 litres	2201	5%	Concessional rate for bulk water
Mineral Water	Natural mineral water, spring water (branded)	2201	18%	Higher rate for natural mineral water
Aerated / Sparkling Water	Carbonated water, club soda (unflavoured)	2201	18%	Plain carbonated without flavour/sugar
Flavoured / Sweetened Water	Flavoured aerated drinks, Limca, Sprite type	2202	28% + Cess	12% compensation cess additionally
Coconut Water (packaged, branded)	Sealed tetra packs / PET bottles of coconut water	2009	12%	Fresh unpackaged coconut water: Exempt
Rain Water (harvested)	Collected natural rain water	—	0% (Nil)	Not a taxable supply

Why the 20-Litre Threshold Matters

The GST Council introduced the 5% rate for packaged water in containers larger than 20 litres specifically to reduce the tax burden on bulk water supply — typically used in offices, homes with water dispensers, and community supply. This distinction creates a precise classification line: a standard 20L Bisleri jar (exactly 20 litres) falls under the 12% bracket, while 25L or larger containers fall under the 5% bracket.

For businesses supplying water, the exact container capacity printed on the label determines GST liability. Misclassification between these two brackets is a common GST audit trigger.

Municipality and Government Water Supply: Exempt

Water supplied by a local authority, municipality, or gram panchayat through a piped distribution network is fully exempt from GST regardless of whether it is supplied to households, commercial establishments, or industries. This exemption covers treated tap water, canal water distribution by government bodies, and water tanker supplies by municipal corporations.

The exemption does not extend to private water supply companies or tanker operators — they must charge GST on water supply services at the applicable rate depending on the water type being supplied.

Mineral Water vs Packaged Drinking Water: GST Difference

Packaged drinking water (like Bisleri or Kinley) is purified water processed through RO/UV treatment and packed in sealed containers. It is taxed at 12% (for ≤20L containers).

Natural mineral water (like Evian, Perrier, or some Indian brands marketed as natural spring water) is water sourced from natural springs containing naturally occurring minerals without significant processing. It attracts 18% GST as the classification is different under the notification.

The distinction hinges on source and labelling. If a product is marketed and labelled as "natural mineral water" under BIS standards, it typically attracts 18%. Regular RO-purified packaged water attracts 12%.

GST Input Tax Credit on Water Purchases

Businesses that purchase packaged water for use in their trade or manufacturing processes can generally claim Input Tax Credit (ITC) on the GST paid, subject to the normal ITC eligibility conditions. However, ITC on water purchased for consumption by employees (canteen, pantry) may be restricted under Section 17(5) of the GST Act if it falls under blocked credits for "personal consumption."

Frequently Asked Questions

What is the GST rate on a 1 litre packaged drinking water bottle?

A sealed 1 litre packaged drinking water bottle (such as Bisleri, Kinley, or Aquafina) attracts 12% GST. This applies to all packaged drinking water in containers up to and including 20 litres. The HSN code is 2201, and the supply qualifies as a taxable supply of goods. The 12% rate includes both CGST (6%) and SGST (6%) for intra-state supplies, or IGST (12%) for inter-state supplies.

Is GST charged on a 20 litre water jar or dispenser refill?

Water supplied in large containers or jars exceeding 20 litres (such as 20L+ bulk jars used with water dispensers or coolers) attracts a reduced GST rate of 5%. This concessional rate was introduced to make bulk packaged water more affordable. The 20-litre boundary is critical — containers of exactly 20 litres or less fall under the 12% bracket, while containers larger than 20 litres fall under the 5% bracket.

What is the GST rate on aerated and flavoured water?

Aerated water (carbonated water, sparkling water), mineral water with added flavours, and flavoured or sweetened water beverages attract 28% GST plus 12% compensation cess in most cases (as beverages). However, plain packaged mineral water without aeration or flavouring attracts 18% GST under HSN 2201. Aerated drinks containing fruit juice (like nimbooz type) may attract different rates depending on fruit juice content. Always check the specific HSN classification on the product.

What is the GST rate on coconut water?

Coconut water (tender coconut water) sold in sealed/packaged form attracts 12% GST when packaged in unit containers with a brand name. However, fresh coconut water sold directly from the tender coconut (without any processing or packaging in unit containers bearing a registered brand name) is exempt from GST as an agricultural produce. Pre-packaged and labelled coconut water in PET bottles or tetra packs falls under HSN 2009 and is taxed at 12%.

Is water supplied by a municipality or local body exempt from GST?

Yes. Water supplied by a local authority or municipality through a piped water network to households and industrial/commercial consumers is exempt from GST. This exemption covers supply of water (other than aerated, mineral, distilled, medicinal, ionic, battery, demineralised, or water sold in sealed containers) when supplied by a government or local authority. Rain water harvesting systems and natural sources also do not attract GST as no supply is involved.

GST on Food Items GST on Beverages GST Rate Finder HSN Code Search GST on Restaurant Services Input Tax Credit Guide

◆ Available in 71 Cities

Gst On Water Near You

Expert CA/CS assistance for gst on water across India. Click your city for local details.

→ New Delhi → Mumbai → Bengaluru (Bangalore) → Hyderabad → Chennai → Kolkata → Pune → Ahmedabad → Noida (UP) → Gurgaon (Gurugram) → Jaipur → Lucknow → Chandigarh → Surat → Kochi (Cochin) → Faridabad → Ghaziabad → Greater Noida → Panipat → Sonipat → Manesar (IMT) → Dharuhera → Mathura → Palwal → Agra → Kosi Kalan → Aligarh → Khair → Jewar (Noida International Airport) → Kanpur → Varanasi (Kashi) → Prayagraj (Allahabad) → Meerut → Bareilly → Moradabad → Gorakhpur → Firozabad → Saharanpur → Muzaffarnagar → Bulandshahr → Hapur → Karnal → Kurukshetra → Ambala → Hisar → Rohtak → Yamunanagar → Rewari → Bhiwani → Jodhpur → Udaipur → Kota → Ajmer → Bikaner → Ludhiana → Amritsar → Jalandhar → Patiala → Mohali (SAS Nagar) → Bathinda → Dehradun → Haridwar → Rudrapur → Shimla → Solan (Baddi-Barotiwala-Nalagarh) → Bhopal → Indore → Gwalior → Jammu → Srinagar → Panchkula

Ask Veda