“With the GST Council implemented the compensation cess for automobiles (September 325) and the implementation of 3 September 225), no fresh cess of external supply will be caused,” FADA President CS. Vigneshwar wrote Prime Minister Modi. ET has seen a copy of the letter.
The Association underlined it “More than 95% of the dealer inventory is in bank-subsidized. However, in India’s vehicle dealership currently has a significant, valid-expression compensation cess in their electronic credit laser. Under the current law, these balances cannot be used against CGST/SGST/IGST and they will be reduced without the creation of transitional routes.
He said that it would give “legal, tax paid credit credits in dead capital at the very beginning of the festival season” while the list is in the bank.
“If the credit becomes useless, the drawing power is compressed, interest costs increase and the tension of the contract-when the industry makes stock for September-to-date distribution,” he said. “This is not to revenue; this is about to save legal, tax-paid credits, and prevent avoidable stress for MSM and financial systems.” This problem is intense for vendors, especially on vehicles with high CESE rates. For example, hybrids had previously attracted about 43% GST with a cess, while premium SUV and luxury car were taxed at the peak of 50%. Vehicles already stock with this high rate cess should now be banned in dealer’s books and sold without a cess. According to the industry officials, it can already reduce the margin and put an additional pressure on the bank-adjusted capital. In his representative, the FEDA emphasized the legal example: “In 2017, the transitional credit of Excellence/Services Tax/VAT was allowed (S.140) asked the Dealler organization to bring the Balance to the CGST Act or the CGST Act to allow the transfer of the CGST Act to allow the transfer of the Balance in CGST/IGST Legishers.
The FADA represents more than 5,000 dealerships, including two -wheelers, passenger vehicles, commercial vehicles, tractors and construction equipment, including 000 5,4 outlets.
In September September, in the previous appeal of Finance Minister Nirmala Sitharaman, the vendors made it politically politically: “At that time, the government also gave some VATs and excise permission to GST. Later credits were used and used in public transfer.
The body also warned: “If it is canceled, a dealer will suffer a major blow. He will reduce his working capital. And thus, if the working capital is reduced, there are banks that have to be hit.”