Punjab FM assures cycle makers to raise tax reduction issue at GST Council

Punjab Finance Minister Harpal Singh Cheema on Thursday assured bicycle makers that he will present their case at GST Council for lowering the GST to 5 per cent with input tax credit on bicycles, parts and raw materials.

The representatives of All India Cycle Manufactures’ Association called on Cheema at his office and informed him that amid the global competition, the industry has been facing tough times because of the GST of 12 per cent, according to an official release.

The higher goods and services tax (GST) on bicycles is also leading to tax evasion by fly-by-night bicycle operators, they said.

Highlighting the disparity over the GST on e-bicycle and pedal bicycles, the delegation apprised that 5 per cent GST on electric bicycles was declared in July 2019 for demand generation.

However, pedal bicycles deserve parity as more than 80 per cent of bicycle price ranges between Rs 2,500 to Rs 5,000 and are mostly used by common people for daily commute. Describing cycle as a ‘ride of common people’ and cycle industry as the ‘backbone of Ludhiana’, Cheema said the state government would present their case strongly at the GST Council meeting to safeguard the interests of the industry and the people for whom it is not just a source to travel but a mean to earn their livelihood.

Source from - https://www.theweek.in/wire-updates/business/2022/09/01/nrg17-pb-gst-bicycles.html