GST: Car makers drive feel-good factor by doling out deep discounts

Carmakers and dealers doled out steep discounts to clear the inventory ahead of GST rollout

The automobile industry brought a feel-good factor for its consumers even before the goods and services tax (GST) came into effect on July 1. In the run-up to the roll-out of the new tax regime, carmakers and dealers doled out steep discounts to clear the inventory and avoid losses due to an input tax credit on stocks that entered the system before July 1. To ensure buyers do not postpone purchases, luxury car makers such as Mercedes and BMW offered benefits equivalent to post-GST rates immediately after clarity about the new regime came in the second fortnight of