New Delhi, Dec 23 (New Delhi) The Modi government has been defending the multi-tiered rates under GST, saying there cannot be one rate given that different segments of society have to be taxed differently, but it has emerged that ordinary bicycles used mostly by the low-income group people attract 12 per cent GST while expensive electric bicycles are in the lowest slab of 5 per cent.

In reply to a question on the issue, Minister of State for Finance Anurag Thakur recently had said in the recently concluded winter session of Rajya Sabha that currently there was no proposal to shift ordinary bicycles to lower GST slab of 5 per cent.  A tax expert said that electric bicycles are anyway competing with scooters and hence there is a need to give better rates for electric bicycles. Further, the electric vehicles are very few in numbers and if the government wants to go green, certain tax benefits and incentives are required.