Q-55. we are depositing taxi service on RCM basis, as input is not available when taxi provider charge gst on his bill, now can we take input while we are paying on RCM basis 

Ans. Blocking of Input tax credit is not affected by the fact that the tax is paid on forward charge or reverse charge. Even if a supply attracts RCM, ITC on Motor Vehicles is not allowed under Section 17(5) of the CGST Act,2017 except in case it is used for providing the similar services.

Q. 54 dear we are manufactor of desi khand,gud and jaggery and doing sale of difference-2 packet like 1kg,2 2kg,5kf and 100kg also, can you please tell us which tax rate will apply on these items
we are also doing sale in loose like as per customer requirement without packing

Ans. Jaggery of all types including Cane Jaggery (Gur), Palmyra Jaggery, Khandsari Sugar are Nil rated supplies under HSN code 1701. However other forms of sugar attract GST at 5% or 12%.

Q.53 we have some Carbon Credit (CER) which is to be sold to a customer located in India. What is the GST compliance, rate, HSN and if applicable is it under Forward charge or RCM. 

Ans. The concept of Carbon Credit Certificates is to a great extent similar to that of Priority Sector Lending Certificates (PSLCs).

PSLCs & Carbon Credit Certificates are treated as goods & are taxable @ 18% under chapter 4907 under schedule III of NN-01/2017 Central Tax Rate as per revised rates as on 12.01.2022.

PSLCs supplied by banks/ financial institutions to any registered person comes under the RCM mechanism.

Carbon Credit Certificates are similar to PSLCs but these two are not same & only PSLCs are specifically covered under RCM. Thus, Carbon credits will be taxable under forward charge.