GST on Zomato, Swiggy, Ola, Uber, collected from January 1st – Post World

Currently, restaurants registered under GST collect and file the tax. In addition, taxi aggregators such as Uber and Ola will have to levy 5 percent goods and services tax (GST) from January 1st on booking two- and three-wheel vehicles. In addition, from Saturday, 12 percent tax will be charged on shoes regardless of the prices.

These are just a few of the many changes to the GST regime that came into effect in the new year 2022.

Also to combat tax evasion, the GST law was changed so that the input tax credit is only available when the credit appears in the taxpayer’s GSTR 2B (purchase declaration). A provisional credit of five percent that was previously allowed in the GST rules will no longer be allowed after January 1, 2022.

Bipin Sapra, EY India’s Tax Partner, said, “This change will have an immediate impact on the working capital of taxpayers who are currently on a loan of 105 percent of the Adjusted Loan Compliant Providers.”

Other tax evasion measures that would come into effect from the New Year include requiring Aadhaar authentication to apply for GST refund, blocking the option of GSTR-1 filing in cases where the company has no taxes paid and filed GSTR-3B immediately previous month.

Currently, the law limits filing of returns for outbound shipments or GSTR-1 in the event a company fails to file the GSTR-3B in the past two months.

While companies submit GSTR-1 for a given month by the 11th day of the following month, GSTR-3B, through which companies pay taxes, are submitted between the 20th and 24th day of the following month.

Also, the GST Act was amended to allow GST officials to visit premises to collect tax debts without notice in cases where the taxes paid in GSTR-3B are lower due to the suppressed sales volume compared to the delivery details provided are in GSTR-1.

Sapra said while the change is likely to curb the misbehavior of passing on pre-tax credits by declaring in GSTR-1 without paying taxes in GSTR 3B, real differences in GSTR-1 and GSTR 3B are likely to occur such as the carrying forward of unadjusted credits from unnecessary control.

The move is intended to curb the threat of bogus billing, where sellers would show higher sales in GSTR-1 to allow buyers to claim pre-tax credits (ITC) but report suppressed sales in GSTR-3B to avoid GSTR Lower liability.

Saket Patawari, Executive Director of Nexdigm (Indirect Taxes), said e-commerce operators will now have to pay GST in place of the restaurants and the government tax base could be increased for the reasons mentioned above as these operators also apply to unregistered restaurants GST subject.

“Ecom operators can be asked to register in any state where restaurants are located, even if they don’t have a presence, and to meet all regular GST compliance even if they don’t have any infrastructure in that state . It can be challenging to conduct audits and investigations in all states, especially for startups and new e-com operators, ”added Patawari.

Sapra went on to say that this change will also expand the tax base, as grocery sellers currently outside the GST limit will be subject to GST when served through these online platforms. This makes procurement through these platforms more expensive.

“Given that restaurants sometimes deliver goods along with restaurant services, an invoice could contain multiple payments by multiple people and would therefore be complex. This practice of charging e-commerce operators for the deliveries they make puts a burden on a. additional platform that just facilitates the supply, ”added Sapra.

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