The Punjab Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema on Thursday assured the representatives of All India Cycle Manufactures’ Association that Chief Minister Bhagwant Mann led Punjab Government would represent their case at the GST Council for lowering the GST to 5 percent with input Tax Credit (ITC) on bicycle, its parts and raw materials.
The cycle industry representatives, who called on the Punjab Finance Minister at his office, apprised him that amid the global competition, the industry has been facing tough times because of high GST of 12 percent. The higher GST on bicycle 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 bicycle, the delegation apprised that the disparity on Electric Bicycles 5% GST was declared in July 2019 by the GOI for demand generation.
However, the Pedal Bicycles deserve a parity as more than 80 percent bicycle price ranges between Rs 2500 to Rs 5000 and mostly used by common people for daily commute.
Describing cycle as a ‘ride of common people’ and cycle industry as the ‘backbone of Ludhiana’, the Finance Minister Harpal Singh Cheema said that Punjab Government would present their case strongly at GST Council 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.
The meeting was attended by Kamal Kishore Yadav, Tax Commissioner, Gurpreet Kaur Sapra, Secretary Finance, Aditya Munjal, CEO Hero Cycles, Mandeep Pahwa, Director, Avon Cycles, Gajender Kumar, Head Sourcing, TI Cycles of India.