Auto, Electronics -Dealers Plug At Festive Stock

Automobile and consumer electronics dealers are careful for the crucial party season, because they are waiting for an imminent reduction of goods and service tax (GST) and product prices.

The dealers slowly continue with the addition of inventory to maintain working capital and to prevent funds in the input tax credit from being locked if the expected tariff reductions come into effect. Mahindra and Mahindra have advised his dealers to save only what can be sold easily, in particular the release of models with high CESS. “Dealers is advised to postpone purchases from vehicles that attract a higher power outlet, especially in the absence of clarity about how pre-ratechange shares will be dealt with,” said a person who is aware of the matter.

For most other car manufacturers, however, it is still a ‘waiting’ policy, according to a prominent dealer of multiple brands, including Tata Motors, MG Motor India and Hyundai. “There is no clear communication from OEMs about the strategy to follow the possible GST and CESS changes,” said this person.

Wholesale goals

“There is busy, however, to raise the broth according to wholesale goals,” said this person.

Spokespersons for Maruti Suzuki India, Hyundai Motor India, Mahindra & Mahindra, Tata Motors and Kia India refused to comment.

A group of ministers about GST -rationalization approved the center of the center on August 21 to eliminate the 12% and 28% plates, so that the GST structure is consolidated in two rates -5% and 18%. A higher levy of 40% GST can be imposed on SIN products such as alcohol, tobacco and some luxury goods. The GST -Council will probably meet in the third week of September to complete the new rates and date of implementation. The tax revision comes at the start of the festive season, with important festivals such as Onam and Ganesh Chaturthi that are already underway. Some consumers are already against high-quality purchases, although Walk-ins and questions remain robust according to managers. The cautious attitude of dealers comes in the midst of reports that the center is considering lowering GST rates on TVs with large screen, air conditioners, dishwashers and possibly some car segments.