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.

Q. 52 Recently we see Swiggy etc ded GST TDS on payments made to service providers (collected from people who place order with restaurants or hotels) namely hotels and restaurants U/S 9(5)….what is this provision?

Ans. There are certain services notified by the government under Section 9(5) of the CGST Act, 2017 on which tax shall be paid by the electronic commerce operator. In other words, if the services are rendered by the service provider through the electronic commerce operator in that case liability to pay tax is on the electronic commerce operator. No TCS shall be collected by the electronic commerce operator if the service is covered under Section 9(5) of the CGST Act, 2017.

Whereas as per Section 52 of the CGST Act, 2017, every electronic commerce operator (hereafter in this section referred to as the “operator”), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.

Therefore, every electronic commerce operator shall collect TCS from the supplier of goods or service at the rate of 1% CGST/SGST on value of goods and services except in case services are covered under Section 9(5) of the CGST Act, 2017.