|
On rough patch, cycle inc seeks reduction in GST rate
Ludhiana: 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,
dated 07/06/2023.
|