Automobile dealers stare at Rs 1,000 cr hit on transit stocks under GST

They will only get 40% credit on the Central GST they will pay from July 1 on excise-paid vehicles

Automobile dealers could take a hit of Rs 1,000 crore because of the transitory provisions of the goods and services tax (GST). 

Dealers are entitled to a 40 per cent credit on the Central GST they will pay from July 1 on excise-paid vehicles dispatched by manufacturers till June 30. 

Raising this issue with the department of revenue this week, the Society of Indian Automobile Manufacturers (Siam) said dealers usually carried inventories of four to eight weeks depending on the type of vehicle and the distance from a manufacturing plant. The association said this inventory was worth Rs 48,000 crore,