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GST Tax Shock: Billions in Credit Locked, Auto Sector Faces Major Crisis!

Economy

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Published on 25th November 2025, 6:33 AM

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Author

Abhay Singh | Whalesbook News Team

Overview

India's Goods and Services Tax (GST) Compensation Cess is ending on September 22, 2025, merging into GST. This transition has led to significant issues with blocked Input Tax Credit (ITC) for businesses. The automobile sector is particularly affected, facing an estimated ₹2500 crore in unutilized cess credit. The Federation of Automobile Dealers Association (FADA) has approached the Supreme Court seeking resolution for this credit blockage.