The Maharashtra Authority of Advance Rulings has said purified or treated sewage water for industrial use will be charged goods and service tax at18%, triggering yet another classification issue as natural water is tax-exempt.
The authority has reasoned that the treated water here is purified water. It is used within the applicant’s factory – Rashtriya Chemicals & Fertilisers Ltd in this case – and the excess is sold to Bharat Petroleum for industrial use.
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