In the year 2022, the Goods and Services Tax (GST) will undergo some significant changes. These changes will take effect on 1 January 2022.

Watch this video for a snapshot of the changes.

The following are the major GST changes that will take effect in the new year.

GST rate of garments, textiles and shoes to be hiked

All footwear, regardless of price, will be subject to a 12% GST, while all garments would be subject to a 12% GST. Previously, they were subject to a 5% GST.
 

GST Council has decided to defer GST hike in textiles from 5% to 12%.

Online transport aggregators to come under GST purview

Passenger transportation services provided by auto-rickshaw or taxi drivers through any online transportation aggregator would be taxable at a rate of 5% beginning January 1, 2022. Although such services would continue to be exempt if provided in an offline/manual mode,

Food delivery platforms to come under GST

The procedural changes that would come into effect include online food delivery platforms that will be made liable to collect and deposit GST on restaurant services supplied through them with effect from January 1. They would also be required to issue invoices in respect of such services.

There would be no extra tax burden on the end consumer as currently restaurants are collecting and depositing GST. Only, the compliance of deposit and invoice raising has now been shifted to food delivery platforms.

Mandatory Aadhaar authentication

The mandatory Aadhaar authentication for claiming GST refund is one of the anti-evasion measures that will take effect on January 1.

Change in GSTR-1 filing rule

Currently, the legislation prohibits a business from filing a report for outward supplies, or GSTR-1, if it has not filed a GSTR-3B for the previous two months. According to the new rule, businesses that have not paid taxes or filed GSTR-3B in the previous month would have their GSTR-1 filing privileges revoked. 

GST officers may visit premises without issuing prior show-cause notice

In situations where taxes paid in GSTR-3B are lower based on suppressed sales volume than supply information reported in GSTR-1, the GST law has been changed to allow GST officers to visit premises without previous show-cause notice to recover tax dues.

Apart from changes in GST rules, there is also a change in ATM withdrawal charges. From 1 January 2022, customers will be required to pay Rs 21 per transaction on any ATM withdrawal instead of the previous Rs 20 charges, provided the monthly limit of free transactions is exceeded.

Sources: GST Council Press Release
Indian Express - Business

Image source: Canva

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