5 Key VAT developments in Asia-Pacific in September 2021

Asia – Pacific



  • Recommendation of the 45th Meeting of India’s GST Council

    • E-commerce operators are liable to pay tax on the following services provided through e-commerce operators from 1 January 2022:
      • Transport of passengers, by any type of motor vehicle; and
      • Restaurant services, with some exceptions
    • A change in the filing frequency of Form GST ITC-04, which is currently required on a quarterly basis in order to claim input tax credits on job work. This will be changed to a filing every 6 months for taxpayers with annual turnover over INR 50 million and an annual filing for taxpayers with annual turnover up to INR 50 million.
    • GST rate recommendations are made for several different supplies, including the extension of concessional rates for COVID-19 treatment drugs to 31 December 2021 as well as the introduction of concessional rates for additional COVID-19 treatment drugs until that date.


  • 2022 Budget
    • Increasing the standard VAT rate from 10% to 12%
    • Introduction of varied rates of 5% to 25% for certain goods and services
    • Removal of most VAT exemptions






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