Excelsior Correspondent
JAMMU, June 15: A meeting of J&K Automobile Dealers Association was held today at Jammu to discuss the implication of GST on the automobile trade with effect from 1st July 2017.
All the members raised their serious concern regarding the possibility of influx of vehicles from the neighbouring States, through broker channel, as it was happening earlier before implementation of Entry Tax.
As understood after implementation of GST the trade of automobile fraternity will get gravely affected as the dealers have made huge investments.
If the sale gets diverted to the neighbouring States, the GST will go to that particular State for the vehicles sold in J&K State resulting into huge losses to the automobile trade. The Government should ensure that no such new vehicle be registered with the transport authority of our State, in case the same is purchased from outside the State of J&K.
The Association appreciated the efforts of Rakesh Gupta, president Chamber of Commerce and Industries on his meeting with Chief Minister Mehbooba Mufti and Finance Minister and appraising them about the losses after abolition of Entry Tax.
It is pertinent to mention here that automobile dealers have invested crores of rupees in shape of infrastructure, by raising huge loans from banks and financial institutions, besides giving direct employment to thousands of skilled man-power. In order to safeguard the interest of automobile fraternity/ loss of Govt revenue/ closure of automobile industry from J&K State, they have appealed to the Chief Minister and Finance Minister to get the necessary notification issued for non-registration of vehicles bought from outside the State.
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