New Delhi, May 13 (PTI) Automotive dealers have sought fiscal support, together with an extension of GST fee for the subsequent three months, to survive the second wave of COVID-19.
As per trade sources, the automotive dealers’ physique FADA has written to Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das, apprising them of the difficulties being confronted by the sector whereas in search of instant aid measures.
Federation of Automobile Dealers Associations (FADA), which represents over 15,000 dealers having round 25,000 dealerships throughout the nation, has sought a three-month extension for the delay in submitting returns of GST fee, the sources stated.
Besides, the trade physique has urged the RBI to present tips to banks and NBFCs to give a moratorium equal to the quantity of days of lockdown every state has declared for the fee of instalments of time period loans, brief time period loans, company loans, stock funding, scrutinised loans, and money credit score traces, amongst others.
The physique has additionally recommended the RBI to cut back rates of interest on all loans by 400 foundation factors for 90 days.
They additionally sought a moratorium extension on EMI funds for individuals who have purchased autos.
The automotive dealers have additionally requested the federal government to enable employer’s contribution to PF and ESI to be decreased proportionately, the best way it was finished in the course of the first wave of the COVID-19 final fiscal, the sources stated.
If actions are usually not taken promptly, there could be an hostile monetary impression on the auto retail section. Many of the dealerships, being family-run enterprises, will not be in a position to survive by the point the second wave comes to an finish, the physique famous.
The second wave isn’t solely impacting the city centres like final yr however there’s a large impression on rural demand as effectively this time round, FADA stated within the letter, as per the sources.
As per FADA, complete car registrations in India fell by 28 per cent to 11,85,374 items in April versus 16,49,678 items in March. Similarly, as per SIAM car wholesales final month have declined by 30 per cent to 12,70,458 items in contrast to 18,19,682 items in March this yr.Â
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