GST Latest News: From January 1, footwear and textile products will most likely get costlier as they will now attract 12 per cent GST. This rate was 5 per cent earlier. An exception in this is the cotton products.
New Delhi: The Goods and Services Tax (GST) rates will see a host of different changes from January 1, 2022. Products like apparel, textiles and footwear will attract 12 per cent GST, up from 5 per cent earlier. This will have an adverse impact on the common man’s pocket. E-commerce operators like Zomato and Swiggy will also be liable to pay GST on the restaurant services provided through them, according to a report by Mint. The changes were announced by CBIC on November 18.
Key Changes In GST From January 1
Mandatory Aadhar Verification
The businesses will have to get Aadhar cards authenticated in order to claim a GST refund. This step, according to the report, has been taken as an anti-tax-invasion measure. Non-verification of the Aadhar will block the facility of GSTR-1, which allows businesses to file returns.
12 Per Cent GST On Footwear And Textile Products
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From January 1, footwear and textile products will most likely get costlier as they will now attract 12 per cent GST. This rate was 5 per cent earlier. An exception in this is the cotton products. They will continue to have the older rates of GST.
The passenger services that are provided through apps or other online forms, will attract 5 per cent GST. Offline auto or cab services have been, however, left out of the tax net.
e-Commerce Restaurant Facility
The online platforms that offer restaurant services, like Zomato and Swiggy, will also be liable to pay GST from January 1 2022. The report further said that the restaurants will have to provide invoices to the customers. Although, this will not have any impact on the customers. The burden of GST has been now shifted to e-commerce food delivery platforms.
No Prior Show-Cause Notice Required
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From January 1, 2022, GST officers will not be required to show a show-cause notice before visiting the premises to recover the due taxes.
