With the new year just around the corner, a lot of things are going to change in the way you shop online or commute on a day-to-day basis. These changes will come into effect under the new Goods and Service Tax (GST) rule from January 1, 2022. Under the new rule, your Ola and Uber auto rides, and more are going to get expensive.

The GST rule was announced by the central government earlier this year. As per the rule, all online auto services will become taxable effective from January 1, 2022, at 5 percent. Additionally, all food delivery apps such as Swiggy and Zomato will need to collect and deposit GST to the government on restaurant services offered via the platform. GST rule will also hike prices of clothes and footwear, which will be subjected to 12 percent GST from the start of 2022.

Let’s take a quick look at all changes that you will see from January 1, 2022 under the new GST rule.

Auto rides to get expensive  

Online transport services have become a part and parcel of our life these days, especially during the COVID times, when people avoided using public transport. If you are over-dependent on such platforms such as Uber and Ola, there’s bad news coming for you. As per the new GST guidelines, auto rides offered via an online platform will be taxable by a 5 percent rate from January 1, 2022. Offline auto rides will continue to be tax-free. Platforms such as Uber, Ola, Rapido, and others are unhappy with the move as they believe this will reduce the overall demand.

So, starting Saturday, get ready to pay a lot more for your Ola and Uber auto rides from the new year.

Changes to online cab services

Earlier, the tax on cab rides was set at 6 percent but with the new GST rule of 5 percent rate, your Ola and Uber ride is set to relax a bit. The new rule comes into effect on January 1, 2022. This applies to all online cab services including Ola and Uber.

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Swiggy or Zomato to charge GST

Starting January 1, 2022, food delivery applications such as Swiggy, Zomato, and others will need to mandatorily collect and submit GST with the government on restaurant services offered via the platform. Notably, this will not impact the end consumers by any means. Currently, the restaurants collect and deposit GST and with the new rule, the compliance of deposit and invoice raising has been moved to food delivery platforms.

Aadhaar verification mandatory

Under the new GST rule, all businesses will need to get Aadhaar cards authenticated in order to claim a GST refund. As per reports, the step has been taken as an anti-tax-invasion measure. It should be noted that non-verification of the Aadhaar will block the GSTR-1 facility, which allows businesses to file returns.

The post Ola, Uber rides to online food delivery: New GST rule to bring these changes from Jan 1 appeared first on BGR India.

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