From January 1, 2022, the Goods and Services Tax (GST) regime will undergo a variety of changes. There will also be some procedural changes that will affect e-commerce businesses and food delivery aggregators, but not end users.
These amendments were made by the government to make these sites liable for GST deposit, which it claims will reduce tax evasion.
What will be the changes in the GST?
The rectification in the inverted duty structure in the footwear and textile sectors will take effect on January 1st, with all footwear, regardless of price, subject to a 12% GST, and all textile products, excluding cotton, including premade clothes, subject to a 12% GST.
While passenger transportation services provided by auto rickshaw drivers in an offline/manual method will remain exempt, services delivered through any e-commerce platform will become taxable on January 1, 2022, at a rate of 5%.
What are the procedural changes coming into effect from Saturday?
Swiggy and Zomato would be required to collect and deposit GST on restaurant services provided through them beginning January 1, among the procedural changes that would take effect. In addition, they would be forced to produce bills for such services.
Why this has been done?
In a meeting in September of this year, the GST Council discovered that Swiggy/Zomato did not conduct a mandatory registration check and that unregistered restaurants were providing through these apps.
According to estimates, the exchequer has lost 2,000 crore in tax revenue over the last two years due to alleged under-reporting.
Will there be any burden on end consumers?
No, the January 1st procedural changes will force meal delivery providers to collect and deposit GST on restaurant services with the government. They would also be required to furnish bills for such services.
Because restaurants are already collecting and paying GST, there would be no additional tax burden on the end consumer. Only now, deposit and invoice raising compliance has been delegated to food delivery platforms.
Other changes from January 1
Other anti-evasion measures that will take effect in the new year include requiring Aadhaar authentication when claiming GST refunds and restricting the GSTR-1 filing facility for businesses that have not paid taxes or filed GSTR-3B in the preceding month.
Currently, the legislation prohibits businesses from filing a report for outward supplies, or GSTR-1, if they have not filed a GSTR-3B for the previous two months.
In addition, the GST law has been revised to allow officers to visit premises without a prior show-cause notice to recover tax dues in circumstances where taxes paid in GSTR-3B are lower due to suppressed sales volume than supply information provided in GSTR-1.
The change would help to reduce the threat of bogus invoicing, in which sellers report larger sales in GSTR-1 to allow buyers to claim ITC, but reduced sales in GSTR-3B to reduce GST liabilities.
Latest Post:
- Genpact Recruitment 2022 | Genpact customer service jobs
- Recruitment of RTA Analyst l PhonePe
- Recruitment of Associate Technical Support l Salesforce
- Recruitment of Internship for Customer Service| OnePlus
- Recruitment of Analyst Programmer l Wipro
For More Latest Job and News Click Here
join us on twitter for more latest news and Job Updates please click
join our telegram for more latest news and job updates please click
join our Facebook Page for more latest news and Job Updates please click
For latest news and Job updates you can Join us on WhatsApp :- click here
join us on linkedin for more latest news and Job Updates please click