Buying food items online is going to be expensive from the beginning of the new year i.e. today. Companies like Swiggy and Zomato, which make online delivery of food items, will now have to collect five percent tax from customers and deposit it with the government. Food vendors that are currently out of the purview of the Goods and Services Tax (GST) will have to pay GST if they supply to customers through online orders.
Currently, restaurants registered under GST collect tax from customers and deposit it with the government. Apart from this, app-based cab service companies such as Uber and Ola will also have to collect 5% GST on booking of two-wheelers and three-wheelers. At the same time, 12 percent GST will be levied on all footwear. That is, a GST rate of 12 percent will be applicable on all footwear.
The new rate of ST came into effect from January 1 – In addition, the GST law has been amended to prevent tax evasion. Under this, Input Tax Credit (ITC) will now be available only once. It will be given after the ‘credit’ is entered in the GSTR 2B (Purchase Return) of the taxpayer. Earlier, a ‘temporary’ credit of five per cent was given under the GST rules. This will not be allowed from January 1, 2022.