FADA Urges Centre to Implement New GST Rates Quickly to Save Festive Vehicle Sales
implement the proposed GST rate changes immediately, warning that delays could derail festive season
vehicle sales. In a letter addressed to Union Commerce and Industry Minister Piyush Goyal, FADA said the
government’s announcement of GST rationalisation is creating uncertainty at the ground level, leading customers to
postpone purchase decisions.
Festive Season Sales at Risk
Dealers across the country had stocked up heavily ahead of key festivals such as Onam (August 26),
Vinayaka Chavithi (August 27), Dussehra (October) and Diwali.
However, instead of boosting sales, the announcement of new GST slabs has led to widespread postponements, with buyers
waiting for clarity on rates. FADA cautioned that the entire festive sales momentum could be wiped out, and that recovery
might only come by Diwali if new rates are announced in time.
Call for Earlier GST Council Decision
“If the GST Council meets and announces the new rates ahead of major festivals, it will protect sales during the entire
season and benefit both the industry and customers,” FADA noted in its representation. The association reiterated that
timely implementation is critical to prevent losses for both dealers and manufacturers.
Relief Sought in Financing
Alongside the GST appeal, FADA requested that banks and NBFCs extend the repayment period of short-term
financing used to build inventory reserves. Currently, this period ranges from 45–60 days, but FADA has
asked for an additional 30–45 days extension to ease the burden. With sales slowing down due to customer
hesitation, dealers face a significant financial strain, the association explained.
About FADA
The Federation represents around 15,000 dealer principals and nearly 30,000 dealerships
across India. Its members account for a substantial share of the country’s automobile retail network, making its
recommendations critical to industry stability during the festive period.
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