FADA Urges Swift GST Reforms to Boost Festive Auto Sales

The Federation of Automobile Dealers Associations (FADA) has requested immediate GST reforms, warning that postponement of vehicle purchases due to anticipated price cuts risks sluggish sales during key festivals. With the GST Council meeting looming, FADA highlights the urgency to ensure dealer stability and protect consumer sentiment.

The Federation of Automobile Dealers Associations (FADA) has made an urgent appeal for the swift implementation of the new GST structure, aiming to avoid potential losses for the industry during the festival season. FADA warns that the current situation, fueled by customer anticipation of price cuts, could severely impact sales.

The GST Council, led by Finance Minister Nirmala Sitharaman, is scheduled to meet on September 3-4 to deliberate potential shifts to a two-slab GST regime. In a letter to Commerce and Industry Minister Piyush Goyal, FADA highlighted the negative impact of the delay on the ground level, emphasizing that consumers are deferring vehicle purchases.

FADA insists that accelerating GST reforms will spread demand more evenly across the festival season, preventing a sales lull and ensuring the automotive industry's resilience. Additionally, FADA seeks guidance on handling accumulated cess credits and recommends that banks extend financing periods, preserving dealer financial health.

(With inputs from agencies.)