The year 2022 will begin with changes in rates of GST. The GST changer has been approved by the Central Government Of India and will be effective from January 1, 2022. The changes will be including liability on e-commerce operators to pay tax on services provided through them by way of passenger transport or restaurant services.
Also, the correction in inverted duty structure in footwear and textile sectors would come into effect from Saturday wherein all footwear, irrespective of prices will attract GST at 12 per cent while all textile products, except cotton, including readymade garments will have 12 per cent GST.
While the passenger transport services provided by auto rickshaw drivers through offline/ manual mode would continue to be exempt, such services when provided through any e-commerce platform would become taxable effective January 1, 2022, at 5 per cent rate.
The procedural changes that would come into effect include e-commerce operators, such as Swiggy and Zomato, being made liable to collect and deposit GST with the government on restaurant services supplied through them from January 1. They would also be required to issue invoices in respect of such services.
While food operators like Zomato and Swiggy will start charging 5 percent GST on every food delivery orders as well. Therefore, there will be an increase in the rise of food items bought online.
