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

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

Reetu | Sep 2, 2022 |

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

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

The Finance Minister of Punjab, Harpal Singh Cheema promised on Thursday that he will advocate for the bicycle industry’s request to have the GST reduced to 5% with input tax credits on bicycles, components, and raw materials in the GST Council.

According to an official statement, the All India Cycle Manufactures’ Association paid Cheema a visit in his office and informed him that the industry has been struggling due to the GST of 12% despite intense worldwide competition.

Fly-by-night bicycle operators may be engaging in tax fraud as a result of the increased goods and providers tax (GST) on bicycles, they claimed.

The delegation emphasised the difference between the GST rates for pedal and electric bicycles, noting that the 5% GST on electric bicycles was announced in July 2019 for demand generation.

However, since most pedal bicycles cost between Rs 2,500 and Rs 5,000 and are mostly utilised by regular people for daily commuting, pedal bicycles deserve equal treatment.

The state government will strongly advocate for the interests of the industry and the people for whom cycling is not only a means of transportation but also a means of supporting their way of life at the GST Council meeting, according to Cheema, who described cycling as a “trip of frequent folks” and the cycling trade as the “spine of Ludhiana.”

Aditya Munjal, CEO of Hero Cycles, Mandeep Pahwa, Director of Avon Cycles, and Gajender Kumar, Head Sourcing, TI Cycles of India, were present at the meeting.

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