(MOREPIC1) Face2News/Ludhiana
In response to MP (Rajya Sabha) Sanjeev Arora’s letter, Union Minister of State for Finance Pankaj Chaudhary informed MP Arora in his written reply that the issue of reduction of GST on bicycles and their parts had been deliberated by the GST council in its 31st and 37th meetings. The minister also assured MP Arora that GST on bicycles and their parts, along with rate rationalization in this sector is being examined by the Group of Ministers on rate rationalization constituted by the GST council.
MP Arora had sent a letter on 29th November 2024 to the Union Finance Minister regarding the rationalization of GST on bicycles and parts from 12% to 5% with ITC benefits. MP Arora highlighted several points, urging the minister to consider these recommendations in the upcoming GST council meeting. Firstly, he recommended extending the GST reduction to all bicycles, applying the 5% GST rate to all bicycles, not just those priced below Rs 10,000, to avoid complications in tax administration and to maximize socio-environmental benefits.
Secondly, he suggested including bicycle parts in the 5% GST bracket to prevent an inverted duty structure and increased costs for manufacturers. Lastly, he emphasized the importance of ensuring ITC benefits with the 5% GST rate to enable manufacturers to pass on the full benefit to consumers, supporting the “Make in India” initiative.
This gives a glimmer of hope for the bicycle industry as bicycles are a crucial mode of transport for many and offer significant environmental and health benefits. MP Arora said, “Reducing GST on bicycles and parts would make them more affordable, curb GST evasion, and support the growth of the “Made in India” bicycle industry”.
MP Arora had also taken up this issue during Zero Hour in the budget session of Rajya Sabha on February 7.
