GST Rules: Goods and Services Tax (GST) is undergoing many major changes from January 1, 2022. The changes under the new GST rules put the onus on the e-commerce operator to pay tax on services provided through passenger transport or restaurant services. The GST law has been amended to allow GST officers to visit the premises for recovery of tax arrears without any prior show cause notice.
In the new year, there is going to be a correction in the inverted duty structure in the footwear and textile sectors. This change will be effective from Saturday 1 January. Under the new rule, all footwear products will attract 12 per cent GST, while all textile products except cotton will attract 12 per cent GST.
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The exemption on passenger transport service provided by auto-rickshaw drivers through offline/manual mode will continue in the new year, when such service provided through any e-commerce platform will attract 5% tax in the new year. .
It is the responsibility of food aggregators like Swiggy and Zomato to collect the GST amount for the restaurant service provided by them and deposit it with the government. They will also have to issue bills for such services.
This will not put any extra burden on the customers ordering food as the restaurants are already charging GST. The only change that has happened is that the responsibility of depositing taxes and issuing bills has now shifted to the food supply platform.
The government estimates that alleged non-disclosure of information by food delivery apps has cost the exchequer around Rs 2,000 in the last two years and making these platforms liable to deposit GST will check tax evasion.
Some more steps can be taken in the new year to prevent tax evasion. These include making Aadhaar verification mandatory for getting GST refunds, blocking GSTR-1 filing facility for non-tax paying businesses, etc.
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