Federation of All India Automobile Spare Parts Dealers Association (FAIASPDA) on Thursday said that Goods and Service Tax (GST) has been a major hurdle in their business which has resulted in transportation cost hike.

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Federation’s newly elected national president Arun Kumar Bajaj said that the motor spare parts dealers of the country have been facing great difficulties. He also said of approaching the GST council with a plea to reduce the GST on motor parts.

“To pay 28 per cent is very difficult. This is reason why the transportation cost has gone so high. We are taking this very serious issue to the finance ministry and the income tax department with a prayer to remove the hurdles in the interest of thousands of automobile spare parts dealers and millions of valued customers. We also appeal to the government to simplify the GST rules,” Bajaj said.

FAIASPDA, which is an apex body of those dealing in motor parts, held it’s AGM in Guwahati on Thursday.

Bajaj pointed out that various difficulties in the export and import of automobile spare parts. He said that simplification and removal of certain hurdles will facilitate huge income for the country.

“Small retailers and the consumers have suffered a lot. Automobile parts are not luxury products. Because of this high rate of taxes, thousands of automobile dealers are suffering across the country. While the government is claiming that there is robust growth in the automobile sector, growth of 25 per cent was recorded in automobile sales and not in retail of spare parts,” said Bajaj.

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Bajaj further added, “We want the government must put motor parts in the 12 per cent GST slab. We have made several representations and government has assured that it is considering our plea. We will again approach the members of the GST council”.

Bajaj also said certain mutual litigations involving people in the automobile motor parts business will be resolved by the federation through arbitration.

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