GST rule change: GST charges, guidelines and different adjustments which come into impact from January 1

The Goods and Services Tax (GST) will witness some key adjustments heading into the brand new yr 2022. The authorities had earlier notified the revisions which is able to come into impact from January 1, 2022.
Some of those adjustments embrace the next GST fee for attire, textiles and footwear and on-line restaurant aggregators similar to Swiggy and Zomato may even be liable to pay GST on the companies offered by way of them.
Here are the important thing adjustments in GST that’ll come into impact from January 1:
Prices of clothes, textiles and sneakers to be hiked
From January 1, the costs of footwear and textile besides cotton merchandise will get increased as they are going to entice 12 per cent GST going ahead. Earlier they used to draw 5 per cent GST. All footwear, irrespective of costs, will entice GST at 12 per cent whereas all textile merchandise, besides cotton, together with readymade clothes could have 12 per cent GST.
Online transport aggregators to return beneath GST ambit
While the passenger transport companies offered by auto-rickshaw or taxi drivers by way of offline/guide mode would proceed to be exempt, such companies when offered by way of any on-line transport aggregator similar to Ola and Uber would develop into taxable efficient January 1, 2022, at a 5 per cent fee.
Food supply platforms to return beneath GST
The procedural adjustments that will come into impact embrace on-line meals supply platforms similar to Swiggy and Zomato, that shall be made liable to gather and deposit GST on restaurant companies equipped by way of them with impact from January 1. They would even be required to subject invoices in respect of such companies.
There can be no further tax burden on the top client as thus far the eating places had been accumulating and depositing GST to the federal government. Only, the compliance of deposit and bill elevating has now been shifted to meals supply platforms.
The transfer comes after authorities estimates confirmed that tax loss to the exchequer attributable to alleged underreporting by meals supply aggregators is Rs 2,000 over the previous two years. Making these platforms responsible for GST deposits would curb tax evasion.
Mandatory Aadhar authentication
The different anti-evasion measures which might come into impact from January 1 consists of obligatory Aadhaar authentication for claiming GST refund, blocking of the ability of GSTR-1 submitting in circumstances the place the enterprise has not paid taxes and filed GSTR-3B within the instant earlier month. Currently, the legislation restricts the submitting of return for outward provides or GSTR-1 in case a enterprise fails to file GSTR-3B of the previous two months.
While companies file GSTR-1 of a specific month by the eleventh day of the following month, GSTR-3B, by way of which companies pay taxes, is filed in a staggered method between the Twentieth-Twenty fourth day of the succeeding month.
GST officers can go to premises with out issuing prior show-cause discover
The GST legislation has additionally been amended to permit GST officers to go to premises to recuperate tax dues with none prior show-cause discover, in circumstances the place taxes paid in GSTR-3B is decrease based mostly on suppressed gross sales quantity, as in comparison with provide particulars given in GSTR-1. The transfer would assist curb the menace of faux billing whereby sellers would present increased gross sales in GSTR-1 to allow purchasers to assert enter tax credit score (ITC), however report suppressed gross sales in GSTR-3B to decrease GST legal responsibility.
Apart from adjustments in GST guidelines, the banks will begin levying increased costs for ATM withdrawals past their free transactions from January 1, 2022.
New ATM withdrawal costs
From January 1, ATM withdrawal past the free transaction restrict goes to be levied at Rs 21 per transaction, as an alternative of Rs 20. This shall be levied provided that clients exceed the month-to-month restrict of free transactions.
Customers are eligible for 5 free ATM transactions (money and non-cash transactions) each month from their very own financial institution’s ATMs. Separately, they’re allowed to do three free transactions from different financial institution ATMs in metro centres and 5 in non-metro ATMs.
(with inputs from PTI)