FADA urges GST Council to take definitive decision on GST rate for automobiles

In a letter written to Finance Minister Nirmala Sitharaman, FADA President Ashish Harsharaj Kale said customers have deferred their buying decisions in anticipation of GST rate cut.

New Delhi: Automobile dealers' body FADA on Thursday urged the GST Council to take a definitive decision on GST rate in its meeting scheduled to be held on Friday.

In a letter written to Finance Minister Nirmala Sitharaman, FADA President Ashish Harsharaj Kale said customers have deferred their buying decisions in anticipation of GST rate cut.

"In anticipation of GST rate cuts on automobiles, customers who were willing to buy automobiles at this juncture have put their purchase decisions on hold, which is but natural, in anticipation of a price reduction."

"Our concern is that the festive season, which is just around the corner, should not be missed, as it is for a very limited period wherein the maximum amount of auto sales happen," Kale said in the letter.
FADA President requested "the GST Council under your (finance minister's) leadership to take a definitive decision on the topic of GST rates in the upcoming GST Council meeting and not to defer it in any way".

A definitive decision on this front would help buyers make up their mind, he added.

The domestic automobile industry is reeling under a prolonged slowdown. In order to revive the industry, manufacturers have been demanding a rate cut in GST from 28 per cent to 18 per cent.