Changes in GST from Jan 2022
Image Credit: PiPa
There are many changes in the Goods and Services Tax (GST) rules from January 1, 2022. This can make a disparity in a lot of things. Its effect can be found on many things. Along with this, the online auto-rickshaw journey will become expensive with wearing clothes and shoes. The changes related to the tax rate and procedure in the GST system will have a direct impact on the common people. Under these changes, e-commerce service providers will have to pay tax on services provided in the transport and restaurants sector. GST was brought by PM in which one tax was imposed by thinking of one nation.
This change will also apply to the duty structure of the textile and footwear sector. Under this, 12 percent GST will have to be expended on all types of footwear. Now it doesn't matter how much the footwear costs. That is, now even buying shoes worth Rs 100 will have to pay 12 percent tax. Earlier, footwear below Rs 1,000 was taxed at 5 percent.
Changes in GST from Jan 2022
On the other hand, except for Khadi, all textile products will also attract 12 percent GST instead of 5 percent. The GST Council has also decided to increase the tax on many types of razors used in sewing. This will make it costly to wear stitched clothes with ready-made clothes. On the other hand, if we talk about auto-rickshaw drivers will continue to get discounts on passenger transportation services given offline. However, when these services are provided through an e-commerce platform, they will attract GST at the rate of five percent.
E-commerce companies like Swiggy and Zomato will also charge GST on their services as part of procedural changes. Companies will have to collect GST instead of these benefits and deposit it with the government. For this, they have to issue a bill of services. This will not put any extra burden on the consumers as restaurants are already charging GST. There will be no covering of any effect on the common people.
Changes in GST from Jan 2022
The only change is that the responsibility of depositing tax and issuing bills has now shifted to the food delivery platforms. The move was taken as the government estimates that around Rs 2,000 has been lost to the treasury in the last two years due to alleged non-disclosure of information on the part of food delivery forums. Making these forums accountable for depositing GST will check tax evasion.
To prevent tax evasion, the government has made Aadhaar verification mandatory for taxpayers claiming GST refunds. From January 1, 2022, the GST refund of businessmen whose PAN-Aadhaar is not linked will be stopped. According to the Central Board of Indirect Taxes and Customs (CBIC), Aadhaar verification has been made mandatory to check fake refund claims. Now the GST refund will be sent only to the bank account, which should be linked to the PAN. Businesses who default in filing return details or do not pay GST every month, will not be allowed to file GSTR-1 sales returns. This means that the non-filer of GSTR-3B will also be barred from filing GSTR-1.
Changes in GST from Jan 2022
Along with this, let us also tell you that under the new rule, if a businessman wants to challenge any decision of the tax officer against him, then he will have to pay 25 percent of the fine imposed earlier. For example, if a product is seized for improper storage or non-compliance with the transport rules and the tax authority assesses a fine, then before appealing against the decision, the dealer concerned will have to pay 25% of the amount of the penalty. Its objective is to check the movements leading to stalling of GST collection or penalty due to unnecessary litigation. And many individuals file a case in court for not filling the GST, due to which things go into turmoil. That's why it is essential to do this to stop it.
From the new year, if a person gives cash, extra payment, or other valuables to any member or organization associated with him rather of his partner, then it will be regaled as a taxable supply. Similar payments made to a company will also be chargeable to tax. This means that all the dealings done with the concerned associate or organization will come under GST.