Why is statutory compliance important in the HR department 

To ensure its payroll is compliant through an exact audit, every Company in India invests significant money, time, and effort. Businesses are frequently concerned about the legal result of compliance-related concerns, such as hostile workers, excessive pay demands, and union demands. If a corporation needs more protection, it could run into legal issues even if it has no intention of breaking any laws. Statutory compliance for HR this protection, assists businesses in lowering the risk of non-compliance. Companies operating in India must adhere to a payroll outsourcing provider due to the growing risks of non-compliance.

In HR, what is Statutory Compliance?

The most frequently used phrase is “Statutory compliance for HR,” which refers to rules and regulations that are “related to statutes.” loyalty is represented by compliance. Statutory compliance is defined as “To Obey the Rules and Regulations.”

The legal framework in which the Company operates all its responsibilities is statutory compliance. First and foremost, any organization that employs people must follow all central and state labour regulations.

These laws protect the interests of the employer, employee, and Company. Thus, all organizations must abide by federal and state labour rules, no matter how big or small. Strict legal action may be taken against any organization that disobeys.

All food delivery apps, including Zomato and Swiggy, are registered with Tax Collected at Source (TCS) in GST records. “This move will not impact the final consumer in any way, as there is no extra tax to be paid,” said Revenue Secretary Tarun Bajaj. The aggregators will now pay the Tax that restaurants previously paid; this will help prevent revenue leakage.

The most popular meal delivery apps, such as Zomato and Swiggy, now pay 5% Goods and Services Tax on orders picked up from the final customer. Currently, these orders are delivered by the restaurants the apps pick up from. Finance Minister Nirmala Sitharaman said this during the 45th GST Council meeting, which took place in Lucknow.

With effect from January 1, 2022, this law for statutory compliance for HR gave e-commerce firms the freedom to modify their reputable software as needed for their business operations.

Based on allegations, there was around Rs 2000 Cr in revenue leakage over the last two years due to food delivery apps allegedly underreporting. With this in place, the GST will be implemented effectively, and the Government will receive between Rs. 5000 Cr and Rs. 7000 Cr from the change in this collecting mechanism over the following four to five years.

The action was made since many unregistered restaurants used the Apps to serve food, and Zomato/Swiggy needed to maintain a mandatory registration check. This would enable the Government to combat systemic bribery and safeguard the income leak.

Advantages of the 45th GST Council Meeting Amendment
A Path to Enhanced Taxation Efficiency and Transparency in India

  1. The modification discussed during the 45th GST Council Meeting carries several substantial advantages that promise to enhance the efficiency and integrity of the taxation system in India:
  2. Reduction of Intermediaries: By reducing the number of intermediaries between the Government and aggregators, this change aims to minimize corruption within the taxation process. This streamlining simplifies the system and bolsters its overall transparency and accountability.
  3. Two-Party Transaction: The modification streamlines transactions by limiting them to two key parties: the Government and the Aggregator. This shift ensures that accountability and transparency are enhanced while making monitoring and tracking transactions easier. The reduced complexity simplifies compliance and reporting, making it a win-win for both parties.
  4. Enhanced Transparency and Revenue Generation: The focus on transparency in the implementation process is a key facet of this Amendment. By addressing gaps and inefficiencies that previously allowed for revenue leakage, the revised system is expected to generate more significant revenue for the Government. This, in turn, ensures that public resources are maximized and available for the benefit of the citizens.
  5. No Extra Tax Burden: Perhaps the most enticing aspect of this Amendment is its ability to increase revenue without imposing an additional tax burden on the end consumer. This is a significant achievement, as it guarantees that the public isn’t adversely affected, and the tax collection process is made more effective, allowing equitable tax revenue distribution.

In summary, this modification promises to simplify and enhance the efficiency, transparency, and revenue generation in the taxation system, ultimately benefiting the Government and the citizens without placing any extra financial burden on the latter. 


The issues within India’s tax framework have often come from the lacklustre execution rather than inherent flaws in the laws themselves. Introducing this new legislation, statutory compliance for HR, marks a significant stride towards rectifying this imbalance, laying the foundation for a more efficient and effective taxation system. With the streamlined processes and reduced intermediaries, the Government is poised to secure its rightful revenue share.

This law aims to curtail corruption, fostering a tax system with greater transparency and accountability. Monitoring and tracking become more straightforward as they promote a two-party transaction model between the Government and aggregators. The enhanced clarity in execution will lead to increased revenue generation, plugging the gaps previously allowed for revenue leakage.
Perhaps most importantly, this Statutory compliance for HR boosts revenue without heaping an additional tax burden on the end consumer. This achievement ensures that the public remains unaffected while the Government gains the necessary resources to fund projects for the nation’s well-being. In this way, the legislation aspires to create a taxation system that is fair, efficient, and beneficial to the country as a whole.