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PV export flat in 2017; pending GST refunds touch Rs 2,000 cr

Press Trust of India  |  New Delhi 

India's passenger vehicle remained flat in 2017, plagued by issue of refund to which has touched Rs 2,000 crore since the implementation of the new regime.

According to the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle (PV) from stood at 7,38,894 units last year as against 7,38,137 units in 2016, a marginal growth of 0.1 per cent.

"The system of refund is not functioning and having an impact on of passenger vehicles. In December, we had a meeting of five-six top exporters and what we found was that the pending refund amount is around Rs 2,000 crore," SIAM said.

The issue has affected companies which export more from than they sell in the domestic market, he added.

"One particular company had around Rs 800 crore of pending refund," Sen said, adding those companies which had substantial domestic sales could still afford to manage the blocking of capital.

Under the regime, payments are made upfront and manufacturers claim input credit refund later.

Such has been the impact of on PV export from that as per SIAM data, after its implementation in July 2017, began to decline rapidly.

In the January-March 2017 period, stood at 1,82,473 units as against 1,62,103 units in the year-ago period, a growth of 12.56 per cent.

Similarly, in April-June period it increased by 13.79 per cent to 1,80,669 units from 1,58,770 units in the same period a year ago.

In July-September, declined by 12.87 per cent to 1,81,423 units as against 2,08,223 units in the same period previous year.

Likewise, in October-December, PV stood at 1,94,329 units as against 2,09,041 units in the year-ago period, a decline of 7.04 per cent.

such as Ford and Volkswagen had in November expressed concern over the challenges faced by companies related to refund.

VW had even stated that it could be forced to rethink on if the challenge was not resolved.

Sen said one of the reasons for drop in of PVs from was also due to major exporter like turning focus on catering to the growing demand in domestic market.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 11 2018. 16:41 IST