These Critical Products, Services Will Become Expensive From January 1, 2022: Full List

The same hike has been imposed on apparel costing less than or equal to Rs 1,000

The new year is almost here and consumers must brace themselves since a bevy of common goods will become dearer.

Certain changes have been made in the Goods and Services Tax (GST) regime which will come into effect from January 1 and the tax burden will have to be borne by the consumer.

The hikes were notified by the Central Board of Indirect Taxes and Customs (CBIC) on November 18. 

Clothes, Footwear, Materials

Finished goods such as apparel, footwear and textiles will become costlier due to a hike in GST on such items from 5% to 12%.

The same hike has been imposed on apparel costing less than or equal to Rs 1,000 

Also affected by the same hike are rates of textiles, including woven fabrics, synthetic yarn, blankets, tents, and accessories such as tablecloths or serviettes.

Auto Rides Booked Online

Be prepared for auto rickshaw rides booked through app aggregators like Ola and Uber to get costlier as well.

The government will levy a 5% GST on auto rides booked online from January 1, ending an existing exemption. 

However, rides availed from the streets will remain GST-free.

Those booking cabs online will have to pay slightly less since the earlier GST rate of 6% will now come down to 5%.

Food Apps

Food delivery apps will have to collect and deposit 5% GST on behalf of restaurants for the deliveries it makes from them.

This is a procedural change starting from January 1, when earlier the tax was collected from the restaurants.

There is no cause for concern for customers since they won’t have to pay any extra tax apart from the standard GST rates already applicable.

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