Punjab govt will seek reduction in GST on bicycles, raw materials: Harpal Cheema
Chandigarh, September 1: The Punjab Finance, Planning, Excise and Taxation Minister, Advocate Harpal Singh Cheema on Thursday assured the All India Cycle Manufactures’ Association representations that Chief Minister Bhagwant Mann-led Punjab government will represent their case at the GST Council and seek 5 percent reduction in GST with input Tax Credit (ITC) on bicycles, its parts and raw materials.
The cycle industry representatives who met with the Punjab Finance Minister at his office informed him that, despite the global competition, the business has been struggling due to the high GST of 12 percent. According to them, the high GST on bicycles is also leading to tax evasion by fly-by-night bicycle operators.
Highlighting the GST disparity between E-bicycles and Pedal bicycles, the delegation stated that the 5% GST disparity on Electric Bicycles was declared by the GOI in July 2019 for demand generation. However, Pedal Bicycles deserve parity because more than 80% of bicycle prices vary between Rs 2500 and Rs 5000 and are largely used by ordinary people for daily commute.
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Finance Minister Harpal Singh Cheema characterised cycling as a "common people's ride" and the cycle industry as the "backbone of Ludhiana," and stated that the Punjab government would make a strong case at the GST Council to safeguard the interests of the industry and the people for whom it is more than just a mode of transportation but a means of earning a living.
Kamal Kishore Yadav, Tax Commissioner, Gurpreet Kaur Sapra, Secretary Finance, Aditya Munjal, CEO Hero Cycles, Mandeep Pahwa, Director, Avon Cycles, and Gajender Kumar, Head Sourcing, TI Cycles of India, all attended the meeting.
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-PTC News
