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

AI Summary

Restaurant GST: Milk Not Exempt, Subject to 5% Tax; Report ITC in GSTR-3B to Match GSTR 2A. A user inquired whether a restaurant registered under the normal GST scheme and paying 5% tax without Input Tax Credit (ITC) can supply exempt items like milk, dahi, and lassi, and if GST should be charged on these items. They also asked about reporting ITC in GSTR-3B. A respondent clarified that milk supplied in a restaurant is not exempt and is subject to 5% GST as a restaurant service. They advised showing credit availed and its reversal in GSTR-3B, ensuring it matches the GSTR 2A figure to avoid disputes.