Offer

Wednesday, June 14, 2017

Dealers offer discounts in bid to cash in on GST concerns

NEW DELHI: A leading private bank has sent out mails to its customers suggesting that this may be the best time to buy cars, since GST may push up prices — something that the government has denied. Even the automobile industry admits that barring hybrids and some small diesel-powered vehicles, prices may not increase.

They are doing so to ensure that the tax burden on dealers does not rise after the new tax regime kicks in from July 1. A Honda executive said that dealers have been asked to advise clients that if their tax liability falls after GST comes into force, the excess payment will be refunded.

Manufacturers say dealers are pushing them to offer discounts. "Most of the offers are due to traders' apprehension over cash flow issues during the first few days of GST implementation. But business will flourish once the teething problems are sorted out," said Panasonic India director of sales and service Ajay Seth. 

Source:-TOI

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