New Delhi: From the first date of the coming new year i.e., January 1, some changes are happening in the GST system.
Several tax rate and procedural changes will come into force in the GST regime from January 1, including the liability of e-commerce operators to pay tax on services provided through passenger transport or restaurant services.
Also, GST correction in inverted duty structure in footwear and textile sector will come into effect from Saturday, wherein all footwear will attract 12 percent GST, while all textile products, except cotton, including readymade garments, will attract 12 percent GST.
There will be no additional tax burden on the end consumer as restaurants are presently collecting GST. Only, compliance of deposit and challan raising has now been shifted to food delivery platforms.
The move comes after the government estimated that the tax loss to the exchequer is Rs 2,000 in the last two years due to alleged under-reporting by food delivery aggregators. Making these platforms liable for GST deposits will curb tax evasion.
Apart from this, another amendment has been made in the GST Act to allow GST officers to visit any premises for recovery of tax arrears without any prior show-cause notice.