NEW CHANGES IN GST; TAX INCREASE IN FOOTWEAR AND GARMENTS
18 September 2021
In the first physical meeting of the GST Council held in Lucknow, many changes have come up regarding tax levies. The tax levies for footwear costing under Rs. 1000 has been increased, ready made garments’ tax has been increased from 5% to 12%. The new rates will come into effect from 1 January 2022.
Finance minister Nirmala Seetharaman also said it was not the right time to bring petrol and diesel prices under the ambit of the GST. It was one of the take outs of the meeting as ever since the Kerala High court demanded a discussion, everyone had been looking forward to a decision. The Council also approved a special scheme to turnover a threshold of Rs. 20 lakh for brick kilns from 1 April 2022. States like Uttar Pradesh had sought a special scheme for brick kilns. The meeting extended the concessions for tax rates on covid essentials, Remdesivir, Amphotericin B, etc. as the country is yet going through the pandemic.
The GST meeting decided to make food delivery apps like Swiggy and Zomato liable to remit tax on orders, which was usually provided by the restaurants.
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