FICO Hails GST Cut on Bicycles & Sewing Machines, Urges Relief on Raw Materials for Industry Survival
The Federation of Industrial & Commercial Organization (FICO) has welcomed the Government of India’s decision to reduce GST on bicycles, sewing machines, and their parts from 12% to 5%.
City Air News
Sep 4, 2025 07:07
0
Ludhiana, September 4, 2025: The Federation of Industrial & Commercial Organization (FICO) has welcomed the Government of India’s decision to reduce GST on bicycles, sewing machines, and their parts from 12% to 5%.
In a joint statement, Gurmeet Singh Kular (President, FICO), Manjinder Singh Sachdeva (General Secretary, FICO), Gurmukh Singh Rupal (Head, Sewing Machine Division, FICO), and Dalbir Singh Dhiman (Executive Member, FICO) said:
“We wholeheartedly welcome the reduction of GST from 12% to 5% on bicycles, sewing machines, and their parts. This step will enhance the purchasing capacity of the masses across India and bring much-needed relief to the industry.”
However, the association raised concern that the decision may adversely affect micro and small-scale manufacturers due to the inverted duty structure. Currently, raw materials such as steel and plastic attract 18% GST, while the finished products are taxed at 5%. With value addition in bicycles and sewing machines being only 2–3%, this gap creates a 13% deficit of working capital, putting smaller manufacturers under severe financial strain.
FICO has urged the GST Council and the Union Finance Minister to review the issue and align GST on raw materials with finished products at 5%, ensuring genuine benefit to both consumers and the industry.
