Auto body knocks on finmin door for faster GST reforms, compensation cess

M&M stops wholesale supply of high-ticket ICE vehicles on sales drop, fear of cess loss

The Society of Indian Automobile Manufacturers (Siam) has approached the Ministry of Finance, requesting it to fast track the proposed reduction in goods and services tax (GST), which, if not implemented early, could dampen the auto sector’s festival sales.

 

The industry body is also seeking clarity on the issue of compensation cess.

 

Mahindra & Mahindra (M&M) is stopping its wholesale supply of ‘high-ticket internal combustion engine (ICE) vehicles’ above ~15 lakh to dealers, owing to a possible loss on compensation cess, and low sales during the month.

 

Sources indicate that other companies are also contemplating the move, which may dampen