Government Denies Relief on Auto Dealers' Cess Credit

Car dealers paid extra taxes when they bought cars, called the compensation cess.

The government removed this tax, but dealers still have some leftover tax credits they can't use.

The government decided not to help the dealers, who will lose around ₹2,500 crore.

This is because they can't get the extra tax money back.

The dealers worry they won't have enough money to buy more cars because most of their inventory is funded by banks, creating financial strain just before the festive season.

SIAM remains hopeful for a positive outcome.