NEW GST RATES FROM THIS NEW YEAR
How will the new GST rules affect the consumers? which products GST rates are increased? how will new GST rates affect the food delivery, transport and other services? Know about all these in detail.
(The Quiver) In this New Year, people of India are needed to prepare themselves to deal with the changes made in GST rates on different products and services. The Central government has made certain changes in the Goods and Services Tax (GST) regime – which will come into effect from 1 January. These changes were declared by the Central Board of Indirect Taxes and Customs (CBIC) on 18 November.
Which product GST rates are going to increase?
As per changes made in GST rates by the Central government the prices of clothes and footwear will increase. The GST rate on these items will increase from 5 percent to 12 percent from 1 January 2022 onwards. Fabrics like Woven goods, Synthetic yarn, Tents fabrics, Blanket fabrics even table clothes and table napkins will have a increase in GST rate of 12 percent. Cotton products will still be at 5 percent GST.
What will be the GST rate on transport services like Ola, Uber?
GST rate of five percent will be imposed on online bookings of auto rides like Ola or Uber. However, the auto-rickshaws caught from the street will remain free from GST.
On the other hand, the prices of cabs will get lower as the earlier GST rate of 6 percent go down to 5 percent.
How GST rates will affect online food services like Zomato, Swiggy?
From 1 January 2022, the GST rate on food delivery businesses like Zomato, Swiggy, etc remain as it was before. These apps will be liable to collect and deposit 5 percent GST on restaurant services supplied through them from 1 January. GST on food delivery businesses is not much affected as the consumers will not have to pay any extra charges.
How will the new GST rules affect big businesses?
Businesses with an annual turnover 5 crore or more, have to submit two monthly returns- GSTR-3B (self- declared monthly return),GSTR-1 (sales invoice of monthly return).If the returns mentioned in GSTR-3B and GSTR-1 not submitted , then government officials will be sent for collection of the unpaid GST, without any prior show-notice.
