Ludhiana, July 21 (KNN) Ludhiana’s bicycle industry is urging the government to reduce GST rate on bicycles and their parts from 12 per cent to 5 per cent.

The industry is planning to meet Punjab finance minister Harpal Singh Cheema and urge him to take up this issue in the GST council’s meeting.

Earlier, the industry delegation had met with the central government officials, but the meeting did not borne out any results.

As per the traders, if the GST on the bicycle industry is reduced, it will reduce the financial burden on them and also give them a boost.

Ludhiana Cycle and Parts Manufacturers Association (LCPMA) president Prince Bansal said, “The current rate of 12 percent GST on bicycles is too high. Ever since it came into force, the industry has seen reduced demand, cost pressure and compliance burden.”

“As far as our distributors are concerned, their margins have shrunk, and they are facing increased competition from the imports. Our consumers too are at the receiving end as high rate of GST has led to increased prices and limited product choices,” he said.

Bansal added that keeping in view all these factors, reduction of GST to 5 per cent is the need of the hour.

United Cycle and Parts Manufacturers’ Association general secretary Manjinder Singh Sachdeva said, “Reducing the GST rate will benefit both businesses and consumers. Such measures can promote economic growth.”  (KNN Bureau)