Manufacturers of the city have revived their plea for the reduction of GST on bicycles from 12% to 5%. Their fresh demand comes in the wake of anticipated reforms in the national GST structure.
Industry leaders argue that a GST reduction on complete bicycles would spur demand, reduce tax evasion, and strengthen the manufacturing base.
The President of the United Cycle and Parts Manufacturers Association (UCPMA), emphasised the need for urgent relief to the sector. “We demand that GST on finished bicycles should be reduced from 12% to 5%, and that the govt should also address the delay in receipt of SGST and CGST refunds. Genuine businesses need timely input credit. A GST cut to 5% will help reduce burden on consumers and promote local manufacturing,” he said.
The revision, manufacturers said, would encourage green mobility, reduce costs for consumers, and simultaneously support govt revenue with lower taxation.
Drawing attention to the issues being faced by the manufacturing sector, he said, “We had a meeting with cabinet minister Sanjeev Arora in this regard. He assured us that he would hold a separate meeting on the issues we are facing and ensure that they are resolved at the earliest.” He also said the industry had high hopes after Arora became the industry minister, and also because of the fact that he is from Ludhiana.
He explained that the industry has a differentiated tax structure, where bicycle parts remain taxed at 12% but finished bicycles attract only 5% GST. Currently, while parts are taxed at 18%, complete bicycles are placed in the 12% GST slab.
Manufacturers argue this imbalance creates compliance issues and restricts competitiveness.
They reiterated that lower GST on bicycles would help reduce tax evasion and result in benefits to the govt as well. It would help fight against the unorganized and grey-market trade by making legitimate products more price-competitive, they said.
Source #TOI
