As the new year begins, certain changes in GST that come into effect from January 1, 2022, are going to affect the common man’s budget significantly.
New Year 2022: As the new year begins, certain changes in GST that come into effect from January 1, 2022, are going to affect the common man’s budget significantly. Under the new GST rates, withdrawing cash from ATMs will be costlier.
The GST Council had decided in its previous meeting in September that textiles and footwear will fall in the 12 percent rate slab instead of the 5 percent slab, news agency PTI had reported. While the rate change for textiles has been deferred on requests by the states, footwear will now be charged at a 12 percent rate.
Here are some other things which will become costlier in this year, in effect from today.
Withdrawal From ATM Becomes Costlier
ATM transactions will be costlier as the charges on cash withdrawal post the free limit will be more. The RBI has approved that banks can charge Rs 21 instead of Rs 20 on each ATM transaction from now on.
Customers can incur only five free ATM transactions per month. In metro cities, there can be only three free transactions per month from ATMs of other banks.
Cars Become More Expensive
Buying a car will become more expensive now as many auto companies are going to increase the prices of different car models. Maruti Suzuki, Volkswagen and Volvo cars have become expensive from January 1, 2022. While Tata Motors has increased the prices of their commercial cars by 2.5 percent, Toyota and Honda are soon going to join the list.
5% GST On Online Auto Rickshaw Booking
From this day onwards, booking an auto rickshaw using an app-based cab service provider platforms like Ola or Uber will become costlier and burn a hole in customers’ pockets. However, offline discounts would still continue.
Shoes & Slippers Expensive
Any kind of footwear will now be charged at a 12 percent rate instead of 5 percent. The GST council had earlier decided to increase the rate slab for textiles as well, but that was later dropped amid objections from other party members. The decision was taken by the GST Council headed by the Union Finance Minister Nirmala Sitharaman.
Changes In GST Return Rules
As per the new rules, GST officials can now take action against those who file incorrect returns without serving prior notice. In addition, Aadhar authentication will also be required to claim GST refund. If the traders do not file GSTR-3B, then they will not be able to file GSTR-1 next month.
Change in Rules Pertaining To Bank Lockers
According to the new rules that have come into effect from today, banks will be responsible for any loss, fraud, or theft of belongings kept in the bank locker. In such a case, the bank will have to pay 100 times the annual locker rent to the customer. However, according to the RBI, these rules do not apply if the lockers are damaged due to natural disasters.
India Post Payments Bank Charges Hiked
From January 1, 2022 account holders of India Post Payments Bank (IPPB) will have to pay charges for withdrawals and deposits beyond a fixed limit. Cash withdrawal from basic savings accounts will be free 4 times every month. This will be followed by a 0.50 percent charge on each withdrawal, which will be at least Rs 25.
Changes In Rules Of Payment Through Debit And Credit Cards
The RBI has implemented new rules for payments through credit and debit cards, as the customers will have to fill in all details every single time they make an online payment. Any website, online shopping or mobile app card will not be able to save any details of the customers. This rule is intended towards making online payments more secure.
