Speaking to ht auto, fada (federation of automobile dealers association) Vice President Sai Giridhar Mentioned that dealers Currently Have Large Amounts of Compensation Cases in their credited No Transition Pathway after the GST Changes, this Credit Blad Lapse, Causing Them a Permanent Financial Loss and Creating a Big Working Capital Crunch.

“The dealers have discharged this cess on inward supply with a legitimate expectation of utilization, and today any denial of that amount –SINCE IT FORMS The CREDIT Balance of the dealers Benefit of the Lower GST May Not Actually Be Passed on to Vehicle Costs, Because that cost has to be recorded in some way or another, “said Giridhar. He further indicated that deals are requested clarity on compensation cess, asking the government to allow unused balances (as of September 21) to be transferred to or cgst so that using it is set to set. Liabilitys.

“The GST Framework is designed for seamless flow of credit, and lapsing of cess Balanses would contradict this fundamental Principle,” Giridhar Stressed.

Starting September 22, Buyers of Small Cars, Commuter Motorcycycles (UP to 350cc), Three-WHEELERS, and even Commercial Vehicles like buses, trucks, and ambulances will befit from Lower Trucks. The GST Rate on these categories is being reduced to 18% from the existing 28%, whose additional cess – benevied levied at 1% to 22% to 22% depending on the type of passenger vehicle – altogether.

Retailers Expect Demand to Bounce Back Post-GST Reform

Automobile dealers Across India Told Ht Auto that there is an overall ‘positive’ sentiment among buyers post the GST 2.0 Announcement.

Maruti Suzuki Arena dealers in Kolkata said buyer turns Sales are slightly down as customers are booking cars but delaying billing until after September 22. Since news of the tax reduction first emerged.

“Consures are what to show up in larger numbers, as the announcing just took place.

Talking to Honda dealerships, ht auto found that bot customers and sellers are confused about Final pricing after the gst cut. Sales have dropped sharply Since Mid-August as Buyers Adopted a Wait-Watch Approach, Leading to a Noticable Inventory Glut. In the past two days, Queries have risen, but uncertain over new pris is preventing cleaned cleaer communication with customers.

“Customers Started Holding Up Since Mid-August and in Last Two Days, Queries have increased. However, We are yet to have class on the new pricing, so we are not beele to helpd a honda Cars dealership representative.

Commuter Bike Segment Set to see Major Boost

Two-WHEELER dealers in Delhi Say GST 2.0 has Arrived at the right moment, offering significant relife to boyers, especially in the 100cc-60cc motorcycl segment, which drives MOSTES MOSTES MOSTES MOSTES MOSTES MOSTES MOTERS MOTORCYCLES

“The sales are going to boosted a lot. Since most customers are of the 100cc-160cc segment, they will be able to get a lot of benefit from it. Compared to before, we are expecting a boost of 10-12% in sales, “said karan, manager at a bajaj auto dealership in Okhla. “Many customers are planning to buy on Navratri, Combining The AusPicious Timing with Lower Pries,” He Added.

Inventory levels are healthy and expected to improve further. While Premium Bike Buyers Remain Largely Unaffeted by Price Changes, Mass-MARKET CUSTOMERS ARE HOLDING BACK PURCK Purchases Until The GST CUT TAKES Affect dealerships in delhi suggesting premium bike buyers have controlmed to buy vehicles.

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First Published Date: 05 Sept 2025, 21:50 pm IST