Gujarat AAR Rules 'Black Mineral Water' Classifiable As Mineral Water, Taxable At 5% GST

The Gujarat Authority for Advance Ruling (AAR) on 8 May 2026 held that “Black Mineral Water” marketed under the brand “ALVA” by Oxyhydra Beverages Pvt. Ltd. qualifies as mineral water under HSN 22011010 and attracts GST at 5%.

A Bench comprising SGST Member Sushma Varma and CGST Member Vishal Malani held:

“The applicant's product contains added minerals only and contains no flavouring or sweeteners & therefore the product squarely fits within the scope of HSN 22011010.”

Oxyhydra Beverages Pvt. Ltd. told the Authority that it manufactures and supplies bottled black alkaline mineral water sold under the brand “ALVA” in various quantities. It submitted that the product contains minerals such as calcium, magnesium and sodium, but does not contain added sugar, flavouring agents, preservatives or sweeteners.

The company argued that adding minerals to purified water does not change the essential character of the product or make it a commercially distinct beverage. It relied on laboratory reports and manufacturing flow charts to support its claim that the product remains purified water with added minerals and no flavouring substances.

The AAR examined the laboratory reports and HSN Explanatory Notes and found that Heading 2201 covers natural or artificial mineral waters that do not contain added sugar, sweetening matter or flavour. It noted that the product contains only added minerals and does not include any flavouring or sweetening substances.

The Authority further observed that the black colour of the product comes from naturally occurring minerals and not from any flavouring additives. Referring to Notification No. 09/2025–Central Tax (Rate) dated 17 September 2025, the Bench held that mineral water classifiable under Heading 2201 attracts GST at 5% under Entry No. 146 of Schedule I.

Accordingly, the Gujarat AAR ruled that “Black Mineral Water” sold under the brand “ALVA” classifies under HSN 22011010 and attracts GST at 5% (2.5% CGST + 2.5% SGST).

For Applicant: Shri Bansi Sudhir Pandya, Authorised Representative