Plain packaged drinking water and natural mineral water (no sugar or flavour) are now taxed at 5% GST — cut from the old 12%/18% under the GST 2.0 reform effective 22 September 2025. Aerated or flavoured/sweetened water attracts 40%. Tap, municipal and unpackaged natural water is exempt.
GST Rate on Water — Full Decision Table
Every common water product and its GST rate under the current two-slab structure. Chapter 22 of the HSN classification governs most of these.
| Type of Water | HSN | GST Rate | Notes |
|---|---|---|---|
| Packaged drinking water (sealed bottle ≤20L) | 2201 | 5% | Bisleri, Kinley, Aquafina etc. Cut from 12% |
| Packaged water in 20L+ bulk jars | 2201 | 5% | Dispenser / office refills |
| Natural mineral water (branded, plain) | 2201 | 5% | Cut from 18% under GST 2.0 |
| Aerated water — plain (soda, no sugar/flavour) | 2201 | 18% | Unsweetened carbonated water |
| Flavoured / sweetened water & aerated drinks | 2202 | 40% | Demerit slab; cess subsumed |
| Coconut water (packaged & branded) | 2009 | 5% | Fresh/loose coconut water is exempt |
| Tap / river / well water (unpackaged) | — | Nil | No taxable supply |
| Municipality piped water supply | 9969 | Exempt | Supplied by local authority |
| Harvested rain water | — | Nil | Not a taxable supply |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025, when plain packaged and mineral water moved to 5%. Confirm the exact HSN and rate on the official GST portal before invoicing.
When Is Water 5% and When Is It 40%?
For water, one thing decides the slab: whether sugar, sweetener or flavour has been added. Plain water — still or naturally mineral — is a mass-use good at 5%. Add sugar/flavour and it becomes a demerit-slab beverage at 40%.
Plain packaged & mineral water
- Sealed drinking-water bottles of any size
- Natural / branded mineral water
- 20-litre bulk jars & dispenser refills
- No added sugar, sweetener or flavour
- Cut from 12%/18% on 22 Sep 2025
Aerated, flavoured & sweetened water
- Flavoured / sweetened bottled water
- Carbonated soft drinks & sodas with sugar
- Energy & sports drinks
- No separate compensation cess — subsumed
- Classified as a demerit / sin good
Only aerated water that contains added sugar or flavour falls in the 40% slab. Plain carbonated water / club soda with no sweetening remains at 18%. Correct classification between 5% (still), 18% (plain aerated) and 40% (sweetened/flavoured) is the most common water GST error.
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20-Litre Jars, Coconut Water & Other Cases
Before GST 2.0, bulk 20L+ jars were 5% while ≤20L bottles were 12% — the container size mattered. Now both are 5%, so the old 20-litre boundary no longer changes the rate for plain drinking water.
- Sealed bottles (250ml–20L) and 20L+ jars of plain drinking water are all 5%.
- Packaged, branded coconut water (PET bottles, tetra packs) is 5%; fresh loose tender-coconut water is exempt as agricultural produce.
- Distilled, demineralised, medicinal or battery water is not ordinary drinking water — check its specific HSN as it is taxed on its own classification.
How GST Adds Up — Water Products
5% 1-litre packaged water
40% Flavoured / aerated water
The rate cut to 5% has visibly reduced shelf prices — for example, packaged water on Indian Railways was repriced after 22 September 2025 to pass on the lower GST.
Bottling or distributing water? Get your HSN classification & returns sorted.
Get Water GST Advice →Which Water Is Exempt From GST?
Water in its natural, unpackaged form is outside GST. Exemption covers:
- Tap, river, well and natural water — no processing or packaging, so no taxable supply.
- Municipal / local-authority piped water — treated tap water supplied by a government body or municipality to homes, businesses and industry.
- Harvested rain water and natural sources — not a taxable supply.
The exemption covers water that is not aerated, mineral, distilled, medicinal, ionic, battery, demineralised or sold in sealed containers. A private tanker or packaged-water business selling sealed/branded water charges GST at the applicable rate (usually 5%) — being "just water" does not make a packaged sale exempt.
ITC on Water Purchases
Businesses buying packaged water for a taxable business use can generally claim Input Tax Credit on the 5% paid, under the normal conditions.
| Purchase | ITC? | Reason |
|---|---|---|
| Water used as a manufacturing / process input | Yes | Direct business input — normal ITC rules |
| Packaged water for resale by a distributor | Yes | Stock-in-trade — ITC eligible |
| Water for office pantry / staff consumption | No | Often blocked as personal consumption — Sec 17(5) |
ITC on water for employee/personal consumption can be restricted under Section 17(5) of the CGST Act.
- Rates & notifications: gst.gov.in
- CBIC rate finder: cbic-gst.gov.in
- GST 2.0 rationalisation: 56th GST Council, effective 22 September 2025
- Classification: HSN Chapter 22 (2201 / 2202); blocked credit Section 17(5), CGST Act 2017
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position with the official source before you act on it.