please give some more background

running a pre-school like a play group, nursery, junior and senior KG is a commercial activity 

but you can easily procure potable drinking water at residential rates from water distributors 

private pre school is a commercial activity and you have to pay commercia;l charges for water consumed by children 

The Brihanmumbai Municipal Corporation (BMC) and MSEDCL/BEST classify private, fee-charging preschools and playgroups as commercial/non-residential activities. Running one in a residential property typically attracts commercial property tax rates and LT-2 commercial electricity tariffs. You may not have to pay full commercial water charges for children's drinking and utility water.

Pre-primary classes, including nurseries, kindergartens, balwadis, and creches, are specifically classified alongside residential and recognized educational premises. Instead of paying high commercial tariffs, metered pre-primary premises are billed at the concessional/educational rate (around ₹6.36 per kilolitre / 1,000 litres).

Dear Sir/Madam,

A preschool is not automatically liable for the general commercial water tariff. BMC Water Charges Rules place recognised educational institutions and pre-primary classes such as kindergartens, nurseries and crèches operating in residential premises under a concessional category.

However, if it operates from separate commercial premises or lacks the required recognition, BMC may levy non-domestic charges based on the actual use of the premises. Drinking water used by children is not separately classified.

Submit the preschool recognition, approved user documents and water bill to the concerned BMC Hydraulic Engineer and request correction if commercial charges have been wrongly imposed.

Advocate Saurabh Agrawal

Dear Client,

In Mumbai, a pre-school or nursery school run on a fee-paying basis is generally treated as a commercial activity for the purpose of municipal taxes, water charges and utility tariffs, unless a specific exemption is available under the applicable rules or notifications. Municipal authorities generally classify educational institutions operating as private establishments differently from purely residential use. 

Accordingly, if your pre-school is operating from the premises as a business and the local municipal authority or water supply authority has classified the connection under the commercial category, commercial water charges may be levied, including for the drinking water consumed by the children. The fact that the water is consumed by children does not, by itself, entitle the establishment to residential or concessional rates. 

However, the exact liability depends on:

• the nature of your water connection (residential or commercial);
• whether the premises are licensed and assessed as a commercial establishment; and
• whether any exemption or concessional tariff is available for educational institutions under the applicable municipal rules.

If the municipal authority has wrongly classified your premises despite an applicable exemption, you can challenge the demand by filing a representation and, if necessary, pursuing the appropriate legal remedy.

If you let me know whether your pre-school is situated within the limits of the Municipal Corporation of Greater Mumbai (BMC/MCGM) or another municipal corporation, and whether it is being run from a residential flat/bungalow or a commercial premises, I can advise you more specifically on the applicable water charges.

Dear Client, In Mumbai running a preschool is generally considered a commercial activity because it involves providing a service in exchange for fees Because of this authorities typically classify such setups as commercial entities rather than purely residential ones If your preschool is operating as a profit making enterprise you are generally expected to comply with commercial requirements which may include obtaining necessary trade licenses and paying commercial rate property taxes.

Regarding your specific question about water charges the BMC has specific guidelines According to the BMC’s water charges rules certain categories like pre primary classes such as kindergartens nurseries creches and babysitting services located within residential premises are often categorized for billing purposes in a way that may differ from heavy industrial or purely large scale commercial entities In some instances these are grouped with non residential premises and may be charged at specific rates rather than the highest commercial tariff but you should verify your specific billing category with the local ward officer.

To ensure you are fully compliant and avoid any future disputes with your housing society or the Municipal Corporation it is best to check your current water connection status If your building has a common water meter the society typically collects these charges from its members if you have a separate commercial meter the BMC will bill you directly based on your usage. I hope this answer helps, if you have any further query kindly do not hesitate to contact us. Thankyou

- As per Supreme Court , Education is not a trade or business , but this does not prevent municipal authorities from treating the use of premises as commercial for zoning, licensing, or property tax purposes.

- Hence, if you are charging fees from the Kids , then it will be considered as commercial activity. 

Education is not a commercial activity in India