The New Indian Express : Mar 08, 2019, 10:44 AM
Seeking a rollback of the amendments in the GST Act, the automobile dealers body Federation of Automobile Dealers Associations (Fada) has said the changes will have a major impact on their already poor cash flows on the back of slowing sales. The automobile retail trade industry is around Rs 5 lakh crore with around 25,000 dealers. GST Act puts an "unwaranted burden" on their working capital requirements.Seeking a rollback of the amendments in the GST Act, the automobile dealers body Federation of Automobile Dealers Associations (Fada) has said the changes will have a major impact on their already poor cash flows on the back of slowing sales.The federation feels that the insertion of a new section 49A of the GST Act puts an "unwaranted burden" on their working capital requirements, as they are already hit by slowing sales which began from last September.Under the changes, effective January, IGST credit has to be first utilised and when such credit is exhausted only then the credit of CGST and SGST if any, would be utilised against output tax liability, Fada said Thursday.