In a significant move to promote eco-friendly transport, Prime Minister Narendra Modi announced the next generation of GST reforms on Independence Day. The new tax rates, effective from September 22, 2025, include a major relief for the bicycle industry.
Under the reforms, the GST on bicycles has been reduced from 12% to 5%, making cycling more affordable and accessible for the common man.
This reduction extends to bicycle parts as well, with GST on components being cut from 12% to 5%. The initiative aims to encourage sustainable mobility and affordability while enhancing youth engagement in cycling.
Bicycle traders like Punit Mehta have welcomed this move, seeing it as a step towards promoting healthier lifestyles and eco-friendly transport solutions.
The government’s commitment to easing the financial burden on citizens through tax cuts is expected to benefit not only the bicycle industry but also contribute to a greener and more active future for India.
