New Delhi | Jagran Business Desk: With the start of the New Year 2022, India's Goods and Services Tax (GST) will witness some key changes which will affect the pocket of the common man. The government had earlier this year notified some key changes in tax rates and other things which will come into effect from Saturday, January 1.

Some of the key changes which will take place from Saturday include an increased GST rate on footwear, apparel and textiles such as fabrics, synthetic yarn, blankets, tents. Apart from it, online restaurant aggregators such as Swiggy and Zomato will also be liable to pay GST on the services provided through them. The hike in GST rates will lead to the aforementioned goods becoming more expensive for consumers as retail prices will go up.

Here are the key changes in GST that’ll come into effect from January 1:

Hike in GST rates on footwear, apparel and textiles:

The GST Council has decided to increase the GST rates levied on the prices of footwear, irrespective of their prices, to 12 per cent from 5 per cent. The rates of textile products, except cotton, including readymade garments, fabrics, synthetic yarn, blankets, tents will also rise as they will now attract GST at 12 per cent. Earlier these products used to attract GST at 5 per cent. Meanwhile, the GST on apparel priced above Rs 1,000 has been hiked from 5 per cent to 12 per cent.

Online food aggregators to come under GST:

From January 1, online food delivery platforms like Swiggy and Zomato will be made liable to collect and deposit GST on restaurant services supplied through them. The food delivery companies will collect the GST on behalf of the government on restaurant services. They will also issue invoices for these services. However, there will not be any additional burden on the taxpayers. Only the responsibility to collect tax from food outlets has been shifted to food delivery sites.

ATM withdrawal charges to increase:

From January 1, ATM withdrawal beyond the free transaction limit is going to be levied at Rs 21 per transaction, instead of Rs 20. This will be levied only if customers exceed the monthly limit of free transactions.

Auto rides booked through Ola, Uber to become costlier:

From January 1, the Union government announced that ride firms would pay a 5 per cent GST on vehicle rides booked online, abolishing an existing exemption. Tax-free auto rides will continue to be available on the streets.

Posted By: Talibuddin Khan