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GST on Hotels with sale of milk

Krishna Prasad (Accountant) (75 Points)

22 April 2023

Hi,
In a hotel business..
Sale of food and beverages 12 lakh p.a
sale of milk exempt 26 lakh p.a
sale of milk products 5% gst 6 lakhs p.a

so please suggest me about GST implications in this case...
Rate of tax / with input/ without input

Thank you

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6 Replies

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 22 April 2023

Supply of Food & beverages & Milk Products : 5% without ITC (If Supplied in Resturant)
Supply Of Milk : Exempted.

Ref. Notification 20/2019 CT rate

Krishna Prasad (Accountant) (75 Points)
Replied 22 April 2023

Thank you

ashish (ca) (82 Points)
Replied 22 April 2023

Based on the information you have provided, the GST implications for your hotel business are as follows:

Sale of food and beverages: Since the annual turnover is less than Rs. 1.5 crores, you can opt for the composition scheme and pay a flat rate of 5% GST on the total turnover, without availing any input tax credit.

Sale of milk: Milk is exempt from GST, so there is no GST implication for the sale of milk.

Sale of milk products: The sale of milk products is taxable at the rate of 5% GST, and you can claim input tax credit on the GST paid on your purchases of goods and services used for the business.

Therefore, for your hotel business, you can opt for the composition scheme for the sale of food and beverages, and pay 5% GST on the total turnover. For the sale of milk products, you need to charge 5% GST and can claim input tax credit. However, for the sale of milk, there is no GST implication.

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