Key changes in GST rules, Applicable from January 1st 2022

Changes in GST

The Central Board of Indirect Taxes and Customs (CBIC) has introduced new changes on the Goods and Services Tax (GST). These changes will come to effect from 1st January, 2022. The industries which will be affected are the textile Industries, food delivery and transport aggregators. Both the Central and State governments are facing some revenue crunch at the moment; this change will help the central government, which is undergoing a revenue scarcity because of giving concession on fuel duty, by bringing in funds for other public welfare activities.

Major changes which will take place from the 1st of January will be that the prices of footwear and textile excluding the cotton products are bound to increase as they will attract a rate of 12% GST from now onwards. These goods attracted 5% GST earlier. All types of footwear and all types of textile products, including readymade garments, will be charged 12% GST. Online Transport services shall also be affected as 5% GST will be levied on online transport aggregators like Ola and Uber, which have become an inseparable part of our lives. The government has stated that any Cab/Taxi service, if provided through an e-commerce platform would fall under this ambit and these rates shall be applicable to them. These rates will slightly bring down the passenger’s fare as it now creates a duty on the service provider to pay GST. Earlier 6% GST used to be charged for these rides however the passenger paid that.

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