Automobile dealers stare at Rs 1,000 cr hit on transit stocks under GST

They will only get 40% credit on the Central GST they will pay from July 1 on excise-paid vehicles

Ajay Modi  |  New Delhi 

Automobile dealers could take a hit of Rs 1,000 crore because of the transitory provisions of the goods and services tax (GST).  Dealers are entitled to a 40 per cent credit on the Central GST they will pay from July 1 on excise-paid vehicles dispatched by manufacturers till June 30.  Raising this issue with the department of revenue this week, the Society of Indian Automobile Manufacturers (Siam) said dealers usually carried inventories of four to eight weeks depending on the type of vehicle and the distance from a manufacturing plant. The association said this ...

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Read our full coverage on GST

Automobile dealers stare at Rs 1,000 cr hit on transit stocks under GST

They will only get 40% credit on the Central GST they will pay from July 1 on excise-paid vehicles

Automobile dealers across different products could take a hit of more than Rs 1,000 crore owing to the transitory provisions under the GST. Dealers who always carry a significant inventory of cars, two wheelers and commercial vehicles in showrooms, stockyard and in transit will be able to only get a 40 per cent credit on the Central GST that they will pay (from July 1) on excise paid vehicles dispatched by manufacturers till June 30. Raising this issue with the Department of Revenue early this week, industry body Society of Indian Automobile Manufacturers (Siam), said dealers usually carry vehicle inventory of four-eight weeks depending on the product and the distance from a manufacturing unit. The association said this inventory is worth Rs 48,000 crore as it includes cars, two wheelers, three wheelers, light and heavy commercial vehicles, etc as well as spare parts.From July 1, the dealers will have to bill vehicles such cars at a GST of 28 per cent and a cess of up to 15 per cent .. Automobile dealers could take a hit of Rs 1,000 crore because of the transitory provisions of the goods and services tax (GST).  Dealers are entitled to a 40 per cent credit on the Central GST they will pay from July 1 on excise-paid vehicles dispatched by manufacturers till June 30.  Raising this issue with the department of revenue this week, the Society of Indian Automobile Manufacturers (Siam) said dealers usually carried inventories of four to eight weeks depending on the type of vehicle and the distance from a manufacturing plant. The association said this ... image
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