From January 1, a slew of tax rate and procedure changes will take effect, including the requirement for e-commerce operators to pay tax on services delivered through them in the form of passenger transportation or restaurant services. In addition, the rectification in the inverted duty structure in the footwear and textile sectors will take effect on Saturday, with all footwear, regardless of price, subject to a 12% GST, and all textile items, excluding cotton, including premade garments, subject to a 12% GST. While passenger transportation services supplied by auto-rickshaw drivers in an offline/manual method will remain exempt, services delivered through any e-commerce platform will become taxed on January 1, 2022, at a rate of 5%. From January 1, e-commerce companies like Swiggy and Zomato will be required to collect and deposit GST on restaurant services provided via them with the government. In addition, they would be forced to produce bills for such services.
