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 #Ludhiana 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) has said, “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.

UCPMA 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%.