Herald: GST filing for auto dealers should be simplified: Joshi
Herald News

GST filing for auto dealers should be simplified: Joshi

09 Jun 2018 06:02am IST

Report by
VIKANT SAHAY

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09 Jun 2018 06:02am IST

Report by
VIKANT SAHAY

It has nearly been a year since the Goods and Services Tax (GST) has been implemented. Since July last year, after the implementation of the new tax regime, issues have gradually settled. VIKANT SAHAY spoke to the president of the Goa Automobile Dealers Association, Prashant Joshi who felt that the issue of filing returns needs to be made simpler for automobile dealers.

HERALD: It has nearly been a year since GST has been implemented. How has it affected the automobile market?

PRASHANT JOSHI:  The implementation of GST has certainly benefited the automobile dealerships in Goa. It has streamlined lot of processes in the day-to-day business operations. It has surely brought in discipline in the accounting system of dealerships. The biggest advantage which we perceive is the claiming of input credit on purchases from the manufacturers of the cars and sale to customers. However, input credit should be made available for other purchases too wherever it is not applicable now.


HERALD: What are the drawbacks?

PJ: There certainly is a strain in working capital of dealership by 15-20 per cent as we have to pay upfront GSTN on the products we purchase from manufacturers. There are lots of issues on filing of returns which need to be simplified more specially GSTR1 (sales) GSTR2 (purchase) on different dates because GSTR2 return will be made applicable later. Had the GST been implemented from the beginning of financial year instead of July last year it would have been a better option.

HERALD: How has the premium segment car sales been affected due to GST?

PJ: I am not sure about the figures but the sales of premium segment cars had taken a hit initially as the GST has hiked by about 50 per cent. For other normal segment if the trend of sales is downward it is because of the market sentiment and not because of GST. 


HERALD: With the closure of mining in Goa, how has it affected the automobile sales market?

PJ: That is a big factor now as the sentiments are very low. Out of the population of 15 lakh in Goa at least 3.5 lakh people are directly or indirectly earning from mining and since its ban, there is hardly any money flow in the market.  In the last month or so there has been a major hit in the automobile sales market. The percentage drop in the sale would be around 15-20 per cent and last month since the petrol and diesel prices were high, people have postponed their plans to buy vehicles. 


HERALD: What else could have lead to the slowdown in the sale of vehicles?

PJ: The slowdown is primarily due to the closure of mining. Also, the bank norms which were lending loans for purchase of vehicles have lately become very strict now. Each bank is now asking for lot of documents and they are now checking every individual CIBIL score. These two factors are surely affecting the sales of vehicles as the cash component is not there in the market now. 


HERALD: What expectations do you have on sentiment in automobile sector picking up?

PJ: Normally, the Goa market during the rains is low but it picks up with the start of the festive season. We are expecting the market to grow from August onwards. 

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