Auto dealers shower discounts before GST shift with 600k vehicles in stock

Overall amount paid by dealers in compensation cess is estimated to be in excess of Rs 4000 crore

The automotive retail industry is facing a period of intense upheaval as dealers offer steep discounts, particularly on high-value vehicles, in a bid to clear inventory before new GST rates come into effect on September 22. 

Dealers say fresh calculations indicate that compensation cess already paid by auto-dealerships exceeds ₹4,000 crore. Industry insiders estimate that despite aggressive discounting and margin sacrifices, the accumulated cess credit will still be over ₹2,000 crore after September 21. 

“Calculations showed that the cess paid by Mahindra & Mahindra dealers alone is around ₹500 crore, and another estimate shows that BMW dealers have paid around