The Federation of Automobile Dealers Association (FADA) plans to move the Supreme Court, seeking relief over the accumulated compensation cess, which lapsed on September 22, when the new GST norms came into effect. The automotive body stated that dealers could face losses exceeding ₹2,500 crore from the cess paid on pre-reform passenger vehicle inventory.

The automobile dealers’ body has been seeking to use the unutilised compensation cess held in dealers’ books as of September 21, 2025, to be used against regular GST payments or as an option for refund.

Dealers have stated that despite meeting cabinet ministers and senior government officials, no respite appears to be in sight. Sources in the union government indicated that the government has ruled out any relief on the compensation ces

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