Will this New Year prove to be expensive for common people, Know which items/ services will get costlier in 2022
It is Christmas (25th December 2021) and we are just six days far from 2022. There is a lot of happiness and inquisitiveness among the common people about the surprises that the year 2022 holds. However, the commoners in India will face a pinch of bitterness due to the hike in rates of GST that will be effective from January 2022.
The hike in GST (goods and services tax) will be applicable across various commodities and services which include apparels, footwear, textiles, deliveries of Swiggy and Zomato etc.
The GST on apparel, footwear, and textiles will be charged 12 percent from January 2022. Currently, the rates for the items are 5 percent. The textile items include woven fabrics, synthetic yarn, pile fabrics, blankets, tablecloths, rugs, etc. When it comes to footwear we can expect that there is a possibility that shoes will get expensive up to Rs 1000/pair.
On the other hand, food delivery platforms like Swiggy and Zomato will collect and pay 5 percent GST on food orders from January 1. Currently, the GST on cooked food served through delivery platforms like Swiggy and Zomato is paid by the concerned restaurants. However, this will not make any impact on the end of a customer as he/ she will be paying the same GST (i.e 5 percent).
This change in the taxation system has been implemented as several restaurants did not deposit taxes despite making huge profits. The restaurants that want to avail services of Swiggy and Zomato from January 1, 2022, have to mandatorily register themselves like e-commerce sellers.
The bottom-line in the hike in GST will not be welcome by the middle-class section of the consumers. The inflation in day-to-day commodities has already proved to be a headache for the commoners. At this time the higher GST rates on essential commodities will prove to rub salt into the wound of people.