07.06.2023: On rough patch, cycle inc seeks reduction in GST rate

Going through a rough patch due to the fall in production and being unable to reach breakeven, city’s bicycle industry is demanding a reduction in GST rate. The city businessmen are of the view that with existing GST rate of 12%, a huge amount of their money gets stuck in form of refund or input tax credit (ITC) and if it is reduced to 5%, it will ease their fund flow. 

United Cycle and Parts Manufacturers Association (UCPMA) ex-president Inderjit Singh Navyug, “Our industry is currently battling several challenges like huge shortage of labour and delay in receiving payments from our buyers, due to which our productions have plummeted.”

“Besides, due to inflation and frequent hike in rates of raw material, the amount of funds required for running our business is increasing day by day. Amidst all these hurdles, we are constantly trying to find ways to ease our situation,” he added. 

He said that after lot of discussions with fellow industrialists, they had arrived at the conclusion that the rate of GST applicable on the bicycle industry should be reduced from 12% to 5%. 
According to bicycle parts trader and manufacturer Kulpreet Malhotra Bunty, “It will be a big relief for us if the GST rate applicable on our industry is reduced from 12% to 5%. We will be free from the cumbersome process of claiming the ITC and refunds from the departments concerned.”

“We urge the centre government to accept our request and reduce the GST rate,” he added.

UCPMA’s former senior vice-president Pradeep Wadhawan said, “Currently, the cycle industry pays 5% GST on the purchase of raw material, while the GST rate applicable on the sales is 12%.”
Source: The Times of India 

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