Clothing and footwear will become more expensive as GST rates change from January 1, 2022. Key details here
New Delhi: Goods and Services Tax (GST) rates will undergo a multitude of changes from January 1, 2022. Products like clothing, textiles and footwear will attract 12% GST, up from 5% previously. It will have a negative impact on the pocket of the common man. Ecommerce operators like Zomato and Swiggy will also be required to pay GST on catering services provided through them, according to a Mint report. The changes were announced by CBIC on November 18.Also Read – Two Chinese Companies Urge New Delhi to Treat Foreign Investors Equal
Main changes in the GST as of January 1
Mandatory Aadhar verification Also Read – RBI’s New Credit-Debit Card Transaction Rules Take Effect January 1: 10 Things You Should Know
Businesses will need to authenticate Aadhar cards in order to claim a GST refund. This measure, according to the report, was taken as an anti-tax invasion measure. Failure to verify Aadhar will block the installation of GSTR-1, which allows companies to file returns. Read also – Biryani is love, Biryani is life! Indians ordered more than 100 Biryanis in 60 seconds in 2021
12% GST on footwear and textile products
From January 1st shoes and textile products are likely to become more expensive, as they will now attract 12% GST. This rate was 5 percent earlier. Cotton products are the exception. They will continue to have the old GST rates.
E-commerce transport facility
Passenger services provided through apps or other online forms will attract 5% GST. Offline automobile and taxi services were, however, excluded from the tax net.
Online platforms that offer catering services, like Zomato and Swiggy, will also be liable for GST as of January 1, 2022. The report further states that restaurants will be required to provide invoices to customers. However, this will have no impact on customers. The burden of the GST has now shifted to online food delivery platforms.
No prior justification notice required
From January 1, 2022, GST officers will not be required to provide a show cause notice before visiting the premises to recover the taxes due.