Hello GST

Dear friends,


As expected, GST has become a reality effective from 1st July 2017. While the implementation of GST is a revolutionary step and will avoid multiplicity of taxes and cascading effect thereof in the earlier tax regime, there are a lot of apprehensions and a number of grey areas concerning compliances, classification and rates.


For automobile dealers in particular, the taxation of secondhand vehicles, including taxation of resale of demo cars and company owned cars; taxation of repair & servicing of motor vehicles, entailing sale & replacement of parts and consumables; taxation of insurance claims for repair and painting of accident vehicles; and non-availability of input tax credit for duties paid on stocks more than one year old on the appointed date, are some of the major issues, which need to be addressed at the earliest. There are host of other issues as well, which are bugging the automobile dealer community.


I wish to assure my dealer friends that we, in FADA, are alive to the challenges of GST implementation. We have taken up the major issues of concern to the automobile dealers with the Government and are awaiting the clarification. We are also trying to meet the concerned officials within the GST Council and CBEC in order to expedite the response to the issues taken up by us.


To guide and educate automobile dealers on the implications of GST and the preparedness required on their part for smooth transition, an initiative was taken to organise series of seminars on GST in various parts of the country. 14 seminars on GST have been held under the banner of FADA in Mumbai, Delhi, Raipur, Lucknow, Nagpur, Aurangabad, Kochi, Chennai, Bangalore, Vijayawada, Kolkata, Guwahati, Hyderabad & Jaipur. What is heartening is that the seminars received massive response, with each seminar attracting over 150 participants.


While arrangement with Ms Puloma Dalal for advising and guiding FADA members on GST/Service Tax continues, FADA is in touch with other GST Consultants as well to clarify the members’ queries on GST. Members’ queries are also being posted by FADA on Government’s GST Twitter handle.


Besides, FADA has tied up with GSTStreet.com to provide education and guidance on GST to its members through the latter’s GST Digital Learning Course. As part of the digital learning course, GSTStreet will create GST learning community for FADA members on its portal or any other technology platform, led by subject matter experts like Dr Sanjiv Agarwal to address questions of registrants enrolled for digital learning course, up to 2 return period.


FADA has created Statewise Groups of FADA Members on WhatsApp with objectives: (i) to sustain the interest of members and keep them abreast of FADA’s activities, (ii) to foster fellowship among members, (iii) to know what is happening in the industry and trade through sharing of experiences and information, and (iv) to receive feedback. I would urge my fellow dealers to join appropriate State WhatsApp Group, if you have not joined as yet.


As you are aware, sudden decision of General Motors India to stop sales in the Indian market from 1st January 2018 has left the automobile dealers and customers shell-shocked. This abrupt decision of General Motors India is contrary to the assurances given by the company from time to time and has caused huge loss to the company’s dealers, GMI dealers staged a dharna at Jantar Mantar, New Delhi on 27th June 2017 under the banner of FADA, which evoked a massive response and coverage in the media. Further measures to ensure justice to the GMI dealers are being contemplated.


Please feel free to send your inputs and suggestions.


With best wishes,


Yours sincerely,
John K Paul

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