Private ruling: GST and supply of water
Date of advice: 19 August 2025
Published: 27 October 2025
Ruling period: dd/mm/yyyy to dd/mm/yyyy

Ruling: Q1: Are you making a GST-free supply of water under section 38-285 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you sell water to X under the Contract? | A1: Yes. Section 38-285 of the GST Act states: (1) A supply of water is GST-free . (2) However, a supply of water is not GST-free under this section if it is: (a) supplied in a container; or (b) transferred into a container; that has a capacity of less than 100 litres or such other quantity as the regulations specify. (3) It does not matter whether or not the amount of water supplied or transferred fills the container. Goods and Services Tax Ruling GSTR 2000/25 Goods and services tax: GST-free supplies of water, sewerage and sewerage-like services, storm water draining services and emptying of a septic tank (GSTR 2000/25) explains, among other things, when a supply of water is GST-free. Paragraph 20 of GSTR 2000/25 provides that 'a supply of water' in section 38-285, refers to the delivery or the making available of water, as goods, to a recipient's premises. Paragraph 21 of GSTR 2000/25 states: A 'supply of water' is the provision of tangible personal property - goods. In other words, the supply of water means the change in ownership or control and transfer of physical possession of water from a supplier to a recipient. Additionally, paragraph 63 of GSTR 2000/25 provides that where there is a supply of water by delivery by road vehicle and the cost of the transport of that water is part of the supplier's obligations under the contract of supply, the consideration paid by the customer includes the transport of the water. You advised that when you perform the services for X under the Contract, you purchase the water at the filling stations in your own right and sell to X. You charge X $Y for the supply of water which includes the cost of its transport from the water filling station to the water receiving site as per the Contract. Further, you transfer the water into containers that have a capacity of more than 100 litres. Based on the information that you sell water to X in your own right and are required to transport the water from the water filling station to the water receiving site, we consider that the transport is integral to the supply of water. Accordingly, your supply of water to X under the Contract is a GST-free supply of water under section 38-285 of the GST Act.

Relevant facts and circumstances: You are registered for GST. Your Contract with X is for the supply and delivery of water. You provided a copy of the Contract. The Contract sets out the water filling stations, the receiving sites and specifies that the price per load is $Y. You do not acquire the water at the filling stations as an agent of X. You purchase the water at the filling stations in your own right and are personally liable to pay for the water. You own the water that you deliver for X. You on sell the water to X. The supplier of the water bills you for the water just like any other customer that you have to cart water for. The scheduled price per load pf $Y, covers both the cost of water and delivery/transport of water. You deliver the water that you sell to X to the location specified in the Contract. You transfer the water that you sell to X into containers that have a capacity of more than 100 litres.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 38-285