Ola, Uber ride online food delivery: New GST rules to bring these changes from Jan 1


With the new year approaching, a lot of things are about to change in the way you shop online or move around on a day to day basis. These changes will be applicable under the new Goods and Service Tax (GST) rules from January 1, 2022. Under the new rule, your Ola and Uber auto ride, and much more is going to be costlier.

The central government had announced the GST rules earlier this year. As per the rule, all online auto services will become taxable at the rate of 5 per cent with effect from January 1, 2022. Additionally, all food delivery apps such as Swiggy and Zomato will be required to collect and submit GST to the government on restaurant services offered through the platform. The GST rule will also increase the prices of clothing and footwear, which will be subject to 12 per cent GST from the beginning of 2022.

Let’s take a look at all the changes that you will see under the new GST rule from January 1, 2022.

auto rides to be expensive

Online transport services have become an integral part of our lives these days, especially during the COVID times, when people avoid using public transport. If you are excessively dependent on platforms like Uber and Ola, then a bad news is coming for you. As per the new GST guidelines, auto rides offered through online platforms will be taxed at the rate of 5 per cent with effect from January 1, 2022. Offline auto rides will continue to be tax-free. Platforms such as Uber, Ola, Rapido and others are unhappy with the move as they believe it will reduce aggregate demand.

So, from Saturday, get ready to pay a lot more for your Ola and Uber Auto rides from the New Year.

Change in online cab services

Earlier the tax on cab rides was fixed at 6 per cent, but with the new GST norm of 5 per cent, your Ola and Uber rides are all set to relax a bit. The new rule comes into effect from January 1, 2022. This applies to all online cab services including Ola and Uber.

Swiggy or Zomato will charge GST

From January 1, 2022, food delivery applications like Swiggy, Zomato and others will have to mandatorily collect and deposit GST with the government on restaurant services offered through the platform. Notably, it will not affect the end consumers in any way. Currently, restaurants collect and deposit GST and with the new rule, compliance to raise deposits and invoices has been moved to food delivery platforms.

Aadhaar Verification Mandatory

Under the new GST rule, all businesses will be required to authenticate Aadhar card to claim GST refund. As per reports, this step has been taken as an anti-tax evasion measure. It is to be noted that non-verification of Aadhaar will block the GSTR-1 facility, which allows businesses to file returns.

Post Ola, Uber ride on online food delivery: The new GST rules to bring these changes from January 1 first appeared on BGR India.

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