GST rules will change from January 1, buying slippers-shoes and clothes will have to be expensive, food bill will also be affected

GST

There are going to be many major changes in the Goods and Services Tax (GST) from January 1, 2022. These changes include an obligation on e-commerce operators to pay tax on services provided through passenger transport or restaurant services. Also, the correction in the inverted duty structure in the footwear and textile sector will be applicable from Saturday i.e. January 1, in which all footwear will attract 12 per cent GST, while all textile products except cotton will attract 12 per cent GST.

Whereas, the exemption on passenger transport service provided by auto-rickshaw drivers through offline/manual mode will continue when such services provided through any e-commerce platform will attract 5% tax with effect from January 1, 2022. It will take

food bill will also be affected

After the new changes, e-commerce operators like Swiggy and Zomato will be levied GST on the restaurant services provided by them from January 1. They will also be required to issue challans in respect of such services. However, this will not result in any additional tax burden on the end consumer as restaurants are presently collecting GST. Only, compliance of deposit and challan collection has now been shifted to food delivery platforms.

The government took this step because food delivery apps had shown poor performance of Rs 2000 crore in the last two years. Making these platforms liable for GST deposit will curb tax evasion.

Aadhaar authentication mandatory for claiming GST refund

Other tax-evasion checks that will come into effect from the new year include mandatory Aadhaar authentication for claiming GST refunds, stopping the facility of filing GSTR-1 in cases where tax has not been paid and immediately preceding GSTR-3B for the month has been filed.

At present, the rule prohibits filing of return for outward supplies or GSTR-1, if a business fails to file GSTI-3B for the last two months.

However, GSTR-1 has to be filed by the 11th of the next month of the transaction and GSTR-3B will be filed by the 20th of the following month.

Officers can reach recovery without notice

Further, 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. If the tax shown in the form is less than the challan shown in the invoice, then the GST authorities can take action against the traders who filed the return.

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