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    Categories: GST

GST Concession on Motor Vehicles Cars for Persons with Disability (PwDs)

Disability is not just a problem with health or any attribute of any individual, but it reflects the problems an individual faces in interaction with his fellow beings and while living in society. People living with disabilities have to bear an extra cost of living especially by those who are born poor, who tend to accept the severity of life with additional barriers of getting a decent education, work, and other civic amenities. Taken together these life barriers make their life even worse.

Government at instance provides assured benefits, relieving schemes, policies and tax exemptions to the needy and disabled which on a common note directly or indirectly reduces their cost of living. While most of the goods and services before the GST Era were made available to the physically handicapped as tax-free or on subsidized rates, which Post to GST Era was placed in the tax levy rules.

Issued in directions of the Ministry of Finance, the Ministry of Heavy Industries and Public Enterprises notified vide (Notification No. 14/2019- Integrated Tax Rate ) & related Central & State notification for concession in GST rate of motor vehicles Cars, if purchased by any person suffering from Orthopedic physical disability. The post briefly explains the provisions and rules for availing of such exemption.

Eligibility

The concessional rate of GST shall be allowed to only those persons suffering from Orthopedic Physical Disability equal or above 40% disability without considering concerning that the vehicle being purchased will be driven by the disabled person or not.

Category of Vehicles

The notification also notified proposed for exemption the qualification criteria for vehicles which shall be allowed only to vehicles with length not exceeding 4000 mm of which:

  • Vehicles are driven by Petroleum, Liquified Petroleum Gases (LPG) or Compressed Natural Gas (CNG) with engine capacity not exceeding 1200cc; and.
  • Vehicles are driven by diesel with engine capacity of not more than 1500 cc;

Shall be available for concession in the GST rate.

How to Apply?

To apply for a concession in GST rate of the vehicle, the person with disability shall have to:

  1. a) Make an application to Heavy Industry Department (HID) filling Annexure A of the notification.
  2. b) Submit a verified Medical Certificate duly self-attested and duly signed as placed in Annexure B.
  3. c) Submit a copy of the Income-tax returns filed for the past three years.
  4. d) Submit a self-declaration stating the purchase of the vehicle, unavailing of the concession in the past 5 years and not to dispose of the vehicle within the next 5 years from the date of purchase in Annexure C.
  5. e) Details of the vehicle being purchased, Name of the dealer in transaction, RTO verification report and approval letter of authorities where the vehicle is to be registered.

On receipt of application from the disabled, the department shall issue him a GST Concession Certificate within 4 weeks of submission of application, complete in all respects.

GST Concession Certificate

The Certificate issued to the disabled person shall be valid for 3 months from the date of issue of the certificate and the vehicle has to be purchased within such period. The DHI will also issue a certificate to the Transport office, the Regional Dealer of the vehicle and related authorities for cross-checking of the transaction.

Things to Know

  • On purchase of a vehicle with such a GST certificate, the invoice maker shall have to put a hologram on the invoice, imprinted as ‘ To be registered as Adapted Vehicle‘.
  • Within 30 days of registration of the vehicle, the applicant shall report to the DHI for the registration details.
  • Application for ‘Concession of GST on Vehicle purchased by Physically Disabled ‘ shall also have to be sent to the department office of DHI located at :

The Union Secretary (AEI Section )

Department of Heavy Industry

Udyog Bhavan, Room No. 428

New Delhi, 110011

Any information or queries can be raised at Tel: 011-23061490.

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Also Read: GST on RWA on Subscription/ Contribution Received from its Members

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