restaurant services

[Garima Bajaj]

Sir/ Mam

Whether Restaurant services registered under normal scheme and paying tax @5% without ITC, can supply exempt supplies also example- milk, Dahi, Lassi etc, and if yes whether GST needs to be charged on these items also @5% or not.

My second query is whether we have to show ITC in GSTR-3B & then reversed in next row or there is no need to show ITC in 3B

[Shilpi Jain]

Milk supplied in a restaurant would no longer remain a supply of goods. Hence not exempt. Would be liable as restaurant service at 5%.

Suggested to show credit availed and reversal. Though ensure that this credit availed matches your GSTR 2A figure to avoid dispute from department

[Garima Bajaj]

Thanku Mam for your valuable feedback