Goods & Services Tax (GST) Updates

[Navjot Singh]

Nirmala Mam: I don't use apparel.

 

[Sushubh]

Quitting without serving notice period? You may have to pay GST on salary

Employees liable to pay GST on salaries received in lieu of notice period, says an Advance Authority of Advance ruling

www.business-standard.com

 

[Navjot Singh]

Tighter GST rules to take effect from 1 January

The changes in GST rules cover a host of issues including what constitutes a taxable supply, eligibility for tax credits and norms for filing appeals in certain cases

www.livemint.com

One of the amendments says that transactions, by a person, other than an individual, to its members or constituents for cash, deferred payment or other valuable consideration will be treated as a taxble supply. Such transactions from the members to the entity too will be treated in the same way. Experts said this would mean all clubs and associations would be subject to GST on their transactions with members.

 

[Tejas01]

Economics... What Economics!!

Swiggy, Zomato Orders May Become Costlier Due to GST Update

The finance ministry issued a circular earlier this month to announce that the new rule regarding GST will come into effect starting January 1.

gadgets.ndtv.com

 

[Sushubh]

Notably, the five percent GST requirement will be in addition to the existing 18 percent GST that platforms need to pay for offering delivery services through their platforms. The tax will essentially be applied to the price of the food item that platforms are delivering to customers.

I am confused. Restaurants do not add 5% tax on their own food invoice? I guess not coz billing is done by Zomato/Swiggy

 

[Tejas01]

I really want to see the combined effects of all those charges and surcharges and fuel prices and everything on the final price.

 

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[Sushubh]

I mean you can directly compare price on restaurant menu and Zomato menu to get an idea.

 

[Tejas01]

I don't understand the rationality of this decision, tbh. When the economy is going strong, you go for high tax rates to build up reserves. When it hits bottom, you loosen the rates so that spending power increases.

I only fear that such hikes could lead to closure of small venues who lost a lot during pandemic but we're also helped thanks to exposure from Zomato and Swiggy.


Source
This video explains the hardships small eateries go through. This will be a double whammy now.

 

[SVK]

I really want to see the combined effects of all those charges and surcharges and fuel prices and everything on the final price.

Few months back I went to nearby restaurant and ordered parcel. While parcel was being prepared, I checked menu prices and price displayed for same dish on Swiggy. On Swiggy every dish price was Rs 20-30 more.
And after ordering, they also have delivery charges.

 

[Tejas01]

Middlemen will always take a cut. The question is how much cut is too much. While some cut is necessary for survival, now with this additional 23%(18+5%) gst+ delivery charges + surge prices (totally random, you can't even predict) it will be on a higher side.