The next-generation GST reforms represent a significant step towards simplifying India’s indirect tax system. Now people can avail the benefit of GST reforms, which were already implemented on the 22nd of this month. Under the new structure, the GST council has simplified the earlier four-tier structure of 5%, 12%, 18 %, 28% into a two-tier structure of 5% and 18 %. By reducing the tax rate on a wide range of goods and services, the reforms are bringing substantial relief to citizens.
In order to make eco-friendly transport accessible and affordable for the common man, the government has extended significant relief to the bicycle industry. GST on bicycles has been reduced from 12% to 5% to promote affordability, accessibility, and sustainable mobility solutions. Similarly, the GST council has slashed the tax rate on bicycle parts to 5% which previously fell under a 12% slab.
This rationalisation under the next generation GST reforms marked a significant step leading towards cheaper movement and increased bicycle usage among students, fitness enthusiasts, and young professionals. The step will not only make bicycles more affordable for daily commuters, rural households and students, but will also encourage eco-friendly mobility across the country.
The tax cut will provide a much-needed boost to the cycle manufacturing sector, especially small and medium enterprises. Prime Minister Narendra Modi, on the 21st of this month, has also urged the citizens to buy swadeshi products, supporting domestic industries, small manufacturers, local artisans and MSMEs.
