From today, every footwear, regardless of price, will be subject to a 12% tax. In the year 2022, there will be a slew of new GST regulations that go into force.
The government issued a new GST law last year, and Ola and Uber, two of the largest cab aggregators, would be required to begin collecting GST on all 2 and 3-wheeler vehicle reservations from January 1st. Swiggy and Zomato, two popular meal delivery apps, will be required to begin collecting and remitting GST from today forward. This means that food sellers who are presently exempt from GST would be required to do so in the future if their services are delivered through these online platforms.
The tax is now being collected and deposited by eateries registered under the GST.
From today, every footwear, regardless of price, will be subject to a 12% tax. In the year 2022, there will be a slew of new GST regulations that go into force.
In order to combat tax avoidance, the GST legislation has been revised to clarify that an input tax credit may only be claimed if the credit appears on the taxpayer’s GSTR 2B (buy report). After January 1, 2022, the previously allowable 5% provisional credit under GST regulations will be eliminated. There will also be required Aadhaar verification for seeking GST refunds, as well as restricting the GSTR-1 filing option for businesses that haven’t paid taxes or submitted a GSTR-3B in the month before.
It would have an immediate effect on working capital of tax payers who are now using credit of 105 percent of matching credit,” EY India Tax Partner Bipin Sapra said. An additional benefit of this shift is the need for industry to verify that purchases are coming from legitimate and compliant sources.”
A company cannot submit a return for outward supplies or a GSTR-1 if it has not filed a GSTR-3B for the previous two months, as the law now dictates.
GSTR-3B, which is used to pay taxes, is submitted in a staggered manner between the 20th and 24th days of the next month whereas GSTR-1 is filed by the 11th day of the following month.
It has also been clarified that in circumstances where taxes paid in GSTR-3B are lower because of decreased sales volume, GST officials may visit the premises to collect tax dues without a previous show-cause notice.
False invoicing, in which sellers overstate their sales in GSTR-1 to allow buyers to claim input tax credits (ITCs), then understate their sales in GSTR-3B in order to reduce their GST obligations, would no longer be tolerated.
