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Auto, electronics dealers avoid inventory additions amid GST 2.0: Report

The dealers are seeking clarity and therefore avoiding the addition of more inventory to save working capital and the locking of funds in input credit tax

August 27, 2025 / 13:12 IST
Several carmakers are adopting a “wait-and-watch” mode, while others are focusing on stock that can be sold easily

Several carmakers are adopting a “wait-and-watch” mode, while others are focusing on stock that can be sold easily

Car and consumer electronics dealers have hit the brakes on adding inventory ahead of the mega festive season amid the implementation of a revised GST structure that will cut product prices, a report by The Economic Times said.

The dealers are seeking clarity and therefore avoiding the addition of more inventory to save working capital and the locking of funds in input credit tax, the paper said.

Several carmakers are adopting a “wait-and-watch” mode, while others are focusing on stock that can be sold easily, ET said.

Last week, a government panel on GST okayed Centre’s plan to revise the tax structure, cutting down rate slabs to just two of 5 percent and 18 percent. The proposal is likely to be take up in the upcoming GST Council meeting and once approved could be implemented as late September.

Moneycontrol News
first published: Aug 27, 2025 01:11 pm

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