The water bottle hsn code is 2201 for packaged drinking water and mineral water, and GST on packaged water is 5% since 22 September, down from 18%. That covers 1 litre bottles, small cups and 20 litre jars alike, as long as the water has no added sugar or flavour.
Water supplied without a sealed container carries no GST. Flavoured or sweetened water moves to the drinks heading at 40%, and distilled water for batteries is a chemical product at 18%. This page explains each case and shows a distributor's bill. Other drinks are on the cold drinks page.
Packaged water: codes and GST rates
Item / HSN / GST- Packaged drinking water, bottles5%200 ml to 2 litre bottles
- Packaged drinking water, 20 litre jars5%Sealed jars
- Natural mineral water5%Was 18% before the reform
- Plain aerated water (soda) without sugar5%Not sweetened or flavoured
- Ice and snow5%Ice blocks
- Water not in sealed containersNilPlain drinking water
- Flavoured or sweetened water40%Classed with drinks
- Distilled and demineralised water18%Battery and lab water
- Empty plastic bottles and jars18%Packing articles
Quick facts
HSN heading
2201: waters, including mineral and aerated waters, not sweetenedGST rate
5% (2.5% CGST + 2.5% SGST)Rate before the reform
18%Nil
Water not sold in sealed containersDigits to print
4 digits up to Rs 5 crore turnover, 6 aboveCommon wrong code
2202 for plain bottled water
Water bottle hsn code and gst rate table
| Product | HSN | GST |
|---|---|---|
| Packaged drinking water, any size | 2201 90 | 5% |
| 20 litre water jar | 2201 90 | 5% |
| Natural mineral water | 2201 10 | 5% |
| Soda water, plain | 2201 10 | 5% |
| Ice | 2201 90 10 | 5% |
| Plain water, not in sealed container | 2201 | Nil |
| Flavoured or sweetened water | 2202 10 | 40% |
| Distilled water, DM water | 2853 | 18% |
| Empty PET bottle | 3923 30 | 18% |
1 litre packaged drinking water gst rate
A 1 litre bottle of packaged drinking water is 2201 90 at 5%. On a taxable value of Rs 18, the tax is about 90 paise, split as CGST and SGST. Before the reform the same bottle carried 18%. The size of the bottle does not matter: 250 ml cups, 1 litre bottles and 20 litre jars all pay 5%.
Mineral water hsn code
Natural mineral water from a recognised source is 2201 10 at 5%. Aerated water without sugar or flavour (plain soda) is also 2201 10 at 5%. Once sugar or flavour is added, the product is a beverage under 2202, which is now in the 40% slab for sweetened and flavoured drinks.
Distilled water and DM water hsn code
Distilled water, conductivity water and demineralised water used in batteries, laboratories and industry are classified as inorganic chemical products under 2853 at 18%. They are not drinking water. See chemicals.
Water distributor's bill
Water distributor to an office: 20 litre packaged drinking water jars, HSN 2201 90, 100 jars, taxable value Rs 6,000. CGST 2.5% Rs 150. SGST 2.5% Rs 150. Total Rs 6,300.
Deposits taken for returnable jars are not part of the taxable value if they are refunded when the jar comes back. Many distributors keep a jar register for each customer showing jars out and jars returned, which also helps if the tax office asks about the deposits. If the deposit is kept, it becomes consideration for the jar.
Water supply services and restaurants
Supply of water by a municipal body or through pipelines is not packaged water and is generally exempt. Water served free with food in a restaurant is part of the restaurant service. A bottle sold over the counter in a shop is a sale of goods at 5%. Empty PET bottles bought by a bottler are 3923 at 18%, so a bottling plant may build up credit; see plastics.
Water rates here reflect the general entries after the reform. Flavouring, sealing and the purpose of the water decide the line, so check the GST portal entry and ask a GST practitioner or chartered accountant about deposits on returnable jars.
Frequently asked questions
What is the GST rate on packaged drinking water?
Packaged drinking water under 2201 is taxed at 5% since 22 September, down from 18%.
What is the water bottle hsn code?
Packaged drinking water is 2201 90 and natural mineral water 2201 10.
Is GST charged on 20 litre water jars?
Yes, 5%, the same as smaller bottles.
What is the distilled water hsn code?
Distilled and demineralised water are 2853, at 18%.
What is the mineral water gst rate?
Natural mineral water is 2201 10, at 5%.