Various consumer goods will become costlier as a result of changes to Goods and Services Tax (GST) rates that will come into effect from January 1, 2022.

The Central Board of Direct Taxes (CBIC) hiked GST rates applicable on garments, textiles and footwear, based on recommendations of the GST Council. The GST rates on all these items will increase to 12 per cent from 5 per cent from January 1.

The hike in GST rates will lead to the aforementioned goods becoming more expensive for consumers as retail prices will go up.

The GST on apparel priced above Rs 1,000 has been hiked from 5 per cent to 12 per cent. Meanwhile, the rates for textiles such as fabrics, synthetic yarn, blankets, tents and other similar items will now cost more due to the hiked GST.

The GST rate for footwear priced above Rs 1,000 has also been increased to 12 per cent from the earlier 5 per cent.

BOOKING AUTO RIDES ONLINE TO COST MORE

There are chances that autorickshaw rides booked through ride hailing apps like Ola and Uber will get costlier as the central government declared that it will levy a 5 per cent GST on auto rides booking online from January 1, 2021.

However, autorickshaw rides taken from the streets will remain free from GST.

GST RULE CHANGE FOR FOOD DELIVERY APPS

Another GST rule change involves online food delivery apps such as Swiggy and Zomato. These platforms will have to collect and deposit 5 per cent GST with the government.

This was earlier done from the restaurant’s end for the deliveries made by them. However, this change is unlikely to impact consumers.