This article covers Important GST Changes that will take effect on January 1, 2022, and how they would affect E-Commerce Platforms like Zomato, Swiggy, and others. Self-assessment tax recovery without the possibility of a difference between GSTR-1 and GSTR-3B, ITCs are available if a supplier files a GSTR-1. (GSTR-1) is being blocked because (GSTR 3B) was not filed. Aadhaar card authentication is required for GSTR revocation and refund applications. Amendments to Sections 129 and 130 of the CGST Act, 2017, provide the GSTR Commissioner the right to attach any property, including bank accounts, on a temporary basis. Payment of amount equivalent to 25% of the penalty for filing an appeal against a section 129(3) ruling as a condition of filing an appeal Changes in the GST rate on footwear from 5% to 12%, as well as the GST rate on Works Contract Services for Government Authority Contracts.
& Government Entity, as well as GST on services supplied by Associations to its members, starting July 1, 2017.
GST changes have an impact on e-commerce operators such as Zomato, Swiggy, Ola, Uber, and others.
The Goods and Services Tax Council voted on September 17 to make e-commerce operators responsible to pay tax on services offered through them, such as passenger transportation by any form of a motor vehicle and restaurant services provided. According to a statement released by the Finance Ministry following the GST Council meeting, this will take effect on January 1, 2022.
As you may be aware, the government has issued Directive NN. 17/2021- Central Tax (Rate) on November 18, 2021, requiring E-commerce platforms (“ECO”) such as Zomato and Swiggy to pay tax on restaurant services beginning January 1, 2022. According to this regulation, restaurants are nonetheless responsible for paying taxes on non-restaurant services. Further Circular No. 167/23/2021-GST, dated 17.11.2021, was published to clarify the modalities of GST compliance in relation to the delivery of restaurant services via ECO. On “restaurant services” offered through the e-commerce platform, ECO is now required to pay GST. This adjustment does not apply to restaurant services offered from a location with a declared daily rate of Rs. 7,500/- or more. Swiggy, Zomato, and other food delivery services are classified as “e-commerce operators” under Section 2(45) of the CGST Act, 2017.
According to a statement released by the Finance Ministry following the GST Council meeting, this will take effect on January 1, 2022.
The GST rate on footwear has increased from 5% to 12% in Jan 1, 2022.
In order to remedy the inverted duty structure in the Footwear and Textile Sector, the GST Council agreed to implement GST rate modifications beginning in January 2022. All footwear, regardless of price, will be subject to a 12 percent GST, while all textile items, including premade clothing, would be subject to a 12 percent GST. Central Tax (Rate) Notification No. 21/2021| Dated December 31, 2021. Footwear was taxed at a rate of 5% (2.5 percent CGST + 2.50 percent SGST) for sale values not exceeding Rs.1000 per pair, according to Entry No. 225 of Announcement No. 01/2017-Central Duty ( Rate ), dated the 28th June 2017, under CGST schedule I -2.5 percent. The government has now included New Entry 171A1 in ‘Schedule II –6 percent,’ by which it would tax footwear (Running Shoes, Shoes)with a retail value of not more than Rs.1000 per pair at a rate of 12 percent (6 percent SGST+ 6 percent CGST) from January 1st.
Blocking of (GSTR-1) for non-filing of (GSTR 3B).
If you have not filed a GSTR-1 return in FORM GSTR-3B for the previous month, the GSTR-1 return filing capability will be disabled on January 1, 2022.
For example, if a taxpayer does not file a GSTR-3B for November 2021, the GSTR-1 filing capability will be unavailable beginning January 1, 2022.
Self-assessment tax Improvement without the possibility of a difference between (GSTR-1) and (GSTR-3B) from Jan 1, 2022.
“Notwithstanding anything contained in section 73 or section 74, any quantum of tone – assessed duty tax in agreement with a return increase under section 39 that remains overdue, either wholly or incompletely, or any amount of interest payable on such tax that remains unpaid, shall be recovered under the provisions of section 79,” says section 75 (12). The tax payable in respect of details of outward supplies supplied under section 37 but not included in the return furnished under section 39 is included in the term “self-assessed tax” for the purposes of this sub-section. Liabilities disclosed in Section 39 were to be used to calculate self-assessed tax. The difference between GSTR-3B and GSTR-1 can now be recovered u/s 79 without any SCN u/s 74/75.
GST on services given to members by a club or association, retroactively from July 1, 2017.
The Finance Act of 2021 contains sections 108 (Section 7(1)(aa) of the CGST Act, 2017) and 122 (Omitted para 7 of Schedule II of the CGST Act, 2017). The Term’s Scope Supply by comprising acts or transactions of supply of products or services (or both) for cash, deferred payment, or other valuable consideration between any person (other than an individual) and its members or constituents or vice versa.
GST rate on Works Contract Services for Government Authority and Government Entity Contracts are changed from Jan 1, 2022.
Government Entity Contracts. Works contract services delivered to Government Authority or Government Entity for certain contracts have been exempted from the reduced GST rate of 5% /12% w.e.f. January 1, 2022. Certain specified works contract services will be taxed at the residual tax rate of 18 percent under entry 3 (XII) of the tax rate.
As per new GST revised rules, this era from Jan 1, 2022, make a big impact on India’s financial strategy to move forward in the future. If you are a Company, LLP, Entity, or Organisation you want to file GST, we will help you with an easy GST filing without any problems.