- The Federation of Automobile Dealers Association has urged faster GST reform implementation
- Customers are delaying car purchases awaiting GST reduction in the festive season
- FADA warned deferred sales may cause a poor festive sales period
Industry body Federation of Automobile Dealers Association has written to three central ministries seeking expedited implementation of the proposed GST rationalisation reforms.
Customers are postponing car purchases in anticipation of GST cut during the upcoming festive season and these deferments risk turning festive sales into a “whitewash” period, FADA said in its letter to Finance, Commerce and Heavy Industries Ministries, reviewed by NDTV Profit.
FADA has requested preponing the GST Council meeting, reportedly scheduled in September.
The Goods and Services tax Council, headed by finance minister Nirmala Sitharaman, will rollout the new GST tax slabs by around Sept 22 to boost India's festive demand, government sources told NDTV Profit. The implementation of the new GST tax rates will likely be around Sept. 22, expected to coincide with the Navratri celebrations.
The all-powerful GST Council will meet on Sept 3–4 in the national capital to deliberate on the simplified two-structure GST tax slab of 5% and 18% proposed by the Centre. According to sources, the notifications will begin rolling out nearly five to seven days after the GST Council's decision.
Dealerships might face financial stress due to inventory build up.
FADA said proposed low rates of GST on small car should be implemented before Diwali and the pent-up demand will only materialise during the festive period after the new GST rollout.
The body has also sought clarity on how accumulated cess will be utilised after the cess removal.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
