Mumbai, Aug 25
The Federation of Automobile Dealers Association (FADA) has urged the government for faster implementation of the proposed GST rationalisation reforms.
Even as the festive season is approaching, customers are delaying car purchases in expectation of a GST rate cut, and these delays could turn festive sales into a “whitewash” period, NDTV Profit reported, citing a letter sent by the industry body to the Finance, Commerce, and Heavy Industries Ministries.
FADA has requested to prepone the GST Council meeting, which is currently set for September 3 and 4.
The council will consider the proposal from the Finance Ministry for two GST rates of 5 per cent and 18 per cent across all goods, which will replace the existing four slab structure.
The Association said that automobile dealerships may experience financial stress from increased inventory levels. FADA called for the proposed low GST rates on non-premium cars to be implemented before Diwali, as pent-up demand is expected to materialise during the festive period following the new GST rollout.