The notifications of changes in the law by Central Board of Indirect Taxes and Customs (CBIC) have been updated to reflect new guidelines that will be taking effect from next year. These modifications include a number or adjustments related specifically with e Commerce websites, food delivery platforms and consumer goods such as footwear clothes textiles etc., which all stand poised for an increased price tag following January 1st when they were recently notified.

1. Food delivery platforms would now be under new GST burden

A major change has been introduced in the e-commerce industry that has affected the restaurants on a large scale. It was decided at the Goods and Services Tax Council meeting that e-commerce food delivery platforms like Zomato and Swiggy, be made liable to pay tax on services provided through them. These apps will have a new responsibility – collecting 5% GST from customers for their deliveries instead of restaurants who currently provide this service without charge. They’ll also need invoices upfront so shoppers know what’s coming before making orders! But don’t worry: your favourite restaurant isn’t going anywhere anytime soon…just in case you ever want some takeout chow-mein.

2. The rise in prices of Readymade Garments and Shoes

GST rate changes have been introduced in order to correct the inverted tax structure (The term ‘Inverted Tax Structure’ refers to a situation where the rate of tax on inputs purchased is more than the rate of tax on outward supplies). It was clearly notified that all footwear, irrespective of prices, will attract GST at 12 per cent which was 5% pre-change. On the other hand, all readymade textile products, except those made with cotton, will also have GST at the rate of 12 per cent. Previously, these items were sold at a 5 per cent GST rate. These all changes came into immediate effect after Jan 1, 2022.

3. Online transport services like Ola, Uber etc are going to come under the GST range

The giant online transport service companies OLA and UBER have been notified that since their services have become a part of daily needs of the users, any auto or taxi services when provided through any e-commerce platform would become taxable from 1st January 2022, at 5 % rate which was previously GST-free.

It would be mandatory effective from January 1st to make sure of Aadhaar authentication for GST refund and revocation application.

The tax return system will block your ability to file for two consecutive return periods if you have not submitted GSTR-3B by the due date. For example, beginning in 2022 it is anticipated that all taxpayers must have filed GSTR-3B for October 2021 and November 2021,

failing which they’ll be unable to access their filed returns through GST 1 until January of next year .

The seized goods or conveyance has to be reported by the proper officer within the 7 days of the action, specifying the penalty payable.

As part of Finance Act 2021, to prevent malpractices regarding billing and recovery, some changes have been introduced. The changes are related to issues such as taxable supply, eligibility for input tax credits and rules for filing appeals in some cases.

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Qualification: CA in Practice
Company: Suyash Tripathi & Co. Chartered Accountants
Location: MUMBAI, Maharashtra, IN
Member Since: 18 May 2020 | Total Posts: 14

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2 Comments

  1. bhavin rajyaguru says:

    The GST Council recommends deferring the earlier decision to change the rates in textiles recommended in the 45th GST Council meeting Existing rates in Textiles Sector to continue beyond 1st January, 2022

  2. SUMIT KUMAR CHAKRABORTY says:

    Taxi service through e commerce operator was aleady taxable u/s9(5) under CGST Act.It is Not new. However auto service OR omnibus through e commerce operator is taxable u/s9(5) wef 01.01.2022

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