From today, food aggregators such as Swiggy and Zomato will be required to collect and deposit GST at a rate of 5%, broadening the tax base by exposing food merchants who are now outside the GST threshold to GST while providing services through these online platforms. Restaurants that are GST-registered are currently collecting and submitting the tax. Furthermore, beginning today, taxi aggregators such as Uber and Ola will be required to collect a 5% Goods and Services Tax (GST) when hiring 2 and 3 wheeler vehicles. From today, every pair of footwear, regardless of price, will be subject to a 12% tax.
The GST law has been changed to specify that the input tax credit would only be accessible after it appears in the taxpayer’s GSTR 2B (buy return). The 5% provisional credit, which was previously available under GST regulations, will no longer be allowed as of today. Other anti-evasion measures that will take effect in the new year include requiring Aadhaar authentication when seeking GST refunds and banning the GSTR-1 filing facility.
GSTR-3B, which is used by businesses to pay taxes, is filed in a staggered fashion between the 20th and 24th of the following month. the amendment is likely to curb the malpractice of passing the input tax credit through GSTR-1 without paying taxes on GSTR 3B, Also, the GST officers can now visit premises to recover tax dues without any prior show-cause notice.
The e-commerce operators are now liable to pay GST in place of the restaurants, and the tax base of the government may increase due to the above. E-com operators may be asked to obtain registration in each state where restaurants are located, even if they don’t have a presence, and undertake all the regular GST compliance. This practice of laying the burden on E-Commerce operators for supplies made through them is putting an additional burden on a platform that is just facilitating the supply.