Post the Supreme Court hearing last month which banned the sales and registration of all BS-III vehicles, many dealers and auto makers were forced to clear their existing inventory and were offering huge discounts. SIAM claims that these discounts have added up to a loss of over Rs 1,200 crore.
This is not the first time the auto industry has faced such a big loss. During the diesel ban which lasted for eight months between December 2015 - July 2016 the industry suffered a loss of over Rs 4,500 crore and now with banning of BS-III vehicles the industry is likely to report a loss of Rs 2,000 crore.
While diesel ban affected passenger vehicles with over 2.0L diesel engines, the BS-III vehicles registration ban has affected the commercial vehicle and two-wheeler industry. The Auto industry with no other option left is looking to export its unsold inventory to its export markets.
GST not imposed for second hand car sold by an individual New Delhi sources have stated that the Revenue Department had clarified that sale of old jewelry as well as old vehicles by individuals will not attract any GST as the sale is not for furthering any business. Meanwhile when clarifying on Revenue Secretary Hasmukh Adhia's comments yesterday stating that it was informed at GST
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