GST transition: SC to hear auto dealers' plea
The Supreme Court has agreed to hear a plea from the Federation of Automobile Dealers Associations (FADA), who say new finance ministry rules have put at risk over ₹2,500 crore in compensation cess credits after GST 2.0 came into effect.
These rules stopped dealers from carrying forward or claiming refunds on credits they earned before the tax change.
FADA tried raising issue with finance ministry
Thousands of small and medium auto dealers could lose crucial working capital because of these lapsed credits, money many businesses were counting on.
FADA tried raising the issue with the finance ministry and even the Prime Minister's Office (PMO), but got nowhere.
Now, they're asking the court to protect their rights and set a fair example for future tax changes that impact legitimate business earnings.