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Is gst applicable on home delivery of raw milk

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sagar

accountant

27 Points Posted on 26 October 2024

1) their is a supplier of milk

2) his turnover is above 2cr

3) he is a proprietor

4) he is having lots of cattles

5) he is not selling any milk product only raw milk without process

6) he wants to charge home delivery charges

7) he is not having gst no but want to know is gst applicable on home delivery

Replies (2)

Quick Summary

This discussion clarifies whether Goods and Services Tax (GST) is applicable on the home delivery of raw milk. Generally, raw milk itself is exempt from GST if supplied directly by the producer without processing or packaging. If the home delivery is considered part of the overall milk supply and not a separate service, it's likely also exempt. However, GST registration and potential charges could arise if the supplier is registered, offers processed milk, or if the delivery is billed separately and not part of a composite supply.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 26 October 2024

Raw milk is exempt from GST under GST law (Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017), but there are conditions.

Conditions for Exemption

The exemption applies only if the raw milk is delivered directly from the farmer or milk producer to the consumer, without any processing or packaging.

If the raw milk is sold through a milk cooperative society or a registered dairy, GST may still not apply.

GST applies if:

Home delivery services are provided by a registered person.

Aashok Kumar Sharma

Finance/Compliance Consultant

77177 Points Posted on 07 November 2026

No GST on fresh milk:

• Fresh milk and pasteurised milk (HSN 0401) are exempt (Notf 2/2017-CT(R)). UHT milk was taxed separately, so check its current rate if you sell it.

• Home delivery by the supplier as part of selling milk: a composite supply where the principal supply is milk, so exempt. No separate GST on delivery if not billed separately.

• Turnover of Rs 2 crore of exempt supplies doesn't require GST registration (Sec 23(1)(a): persons exclusively supplying exempt goods).

• Income-tax: dairy is business income (animal husbandry), not agricultural income. With turnover around Rs 2 crore, the 44AD presumptive scheme is available (6%/8%), up to Rs 2 crore, or Rs 3 crore if cash receipts are 5% or less.