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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GST on Hotels with sale of milk
Replies (6)
Quick Summary
Supply of Food & beverages & Milk Products : 5% without ITC (If Supplied in Resturant)
Supply Of Milk : Exempted.
Ref. Notification 20/2019 CT rate
Supply Of Milk : Exempted.
Ref. Notification 20/2019 CT rate
Thank you
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.
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.
Composition Scheme there are less complication of filing returns.
I think in Composition scheme, exempted goods also will be taxed at 1%
1. For if you are engaged in Hotel business, cannot opt for composition scheme.
2. And if you providing Resturant Services only & opted for composition scheme then you need to 5% GST on Milk supply also.
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