FADA Seeks Urgent Resolution on Cess Balances Amid GST Transition
The Federation of Automobile Dealers Associations (FADA) has appealed to Finance Minister Nirmala Sitharaman for assistance in dealing with cess balance issues post-GST 2.0. The current law prevents dealers from using significant cess balances, risking financial impacts for MSME dealerships. FADA requests these balances be transferable to regular GST credit accounts.
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- India
The Federation of Automobile Dealers Associations (FADA) has reached out to Finance Minister Nirmala Sitharaman for help tackling the issue of cess balances amid the GST 2.0 transition. The automotive dealers' body highlighted that its members still hold sizeable cess balances in their electronic credit ledgers.
Due to the integration of compensation cess into GST rates, dealers cannot utilize these balances for CGST, SGST, or IGST liabilities, FADA President C S Vigneshwar explained. Without intervention, dealerships face permanent financial losses and a significant working capital disruption.
Vigneshwar urged that the remaining cess credit balances be moved to the IGST or CGST ledger and used for GST liabilities. As the festive season approaches, dealers are anxious, prompting FADA to request prompt action from the finance minister.
(With inputs from agencies.)
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