New Delhi: GST regime will see a number of tax rates and procedural changes come into force starting January 1, including the obligation to e-commerce operators to pay taxes for services provided through them with transportation services or passenger restaurants.
Also, correction in the reverse task structure in the footwear and textile sectors will take effect from Saturday where all footwear, regardless of price, will attract GST at 12 percent while all textile products, except cotton, including readymade clothing will have 12 percent GST .
While passenger transportation services provided by automatic rickshaw drivers through offline / manual mode will continue to be excluded, the service when provided through any e-commerce platform will be effective tax on January 1, 2022, at a 5 percent level.
Procedural changes that take effect include e-commerce operators, such as Swiggy and Zomato, are responsible for collecting and depositing GST with the government at restaurant services that are included through them from January 1.
They will also be asked to issue an invoice in it respecting the service.
There will be no additional tax burden on the final consumer because the current restaurant collects and deposits GST.
It’s just that compliance with deposit worship and invoices has now shifted to the food delivery platform.
This step occurred after the government’s estimate showed that tax losses did not meet the furniture because the alleged alleged aggregator of food giving was Rs 2,000 for the past two years.
Making these platforms responsible for GST deposits will curve tax evasion.
Other anti-continuity steps that have come into force since the new year including Aadhaar authentication must claim GST refunds, blocking the GSTR-1 filing facility in cases where businesses have not paid taxes and submitted GSTR-3B in the previous month.
At present, the law limits the submission of returns for external inventory or GSTR-1 if a business fails to submit GSTR-3B before two months earlier.
While businesses submitted GSTR-1 from a certain month on the 11th day of the next month, GSTR-3B, through which the business paid taxes, submitted in a way that staggered between the 20-24 days of the following month.
Also GST law has been changed to allow GST officers to visit a place to restore tax contributions without notice of previous performances, in cases where the tax paid at the GSTR-3B is lower based on the sales volume pressed, compared to the supply details given by GSTR-1 .
This step will help curb the threat of false billing where the seller will show higher sales at GSTR-1 to allow buyers to claim input tax credits (ITC), but report sales pressed to GST responsibilities.