Concessional GST Rate for Special Items of Physically Challenged Persons

The Ministry of Finance (MoF) has notified to provide concessional GST rates for the special twenty items for the physically challenged persons. The rates have been revised from normal 18% to concessional 5% to reduce the burden of the domestic manufacturers and benefit the physically challenged persons. The assistive products and rehabilitation equipment for

physically challenged persons that are listed under the clause are as follows:

Braille writers and Braille writing equipment
Handwriting kits for physically challenged persons such as Braille frames, Slates, Writing Manuals, Script Writing Guidelines, Braille Erasers and Styli.
Walking Sticks, Electrical machines for physically challenged persons such as Sonic Guide.
Optical and Environmental Sensors
Arithmetical aids such as Taylor Frame for Arithmetic and Algebra computations, Cubarythm, Speaking or Braille calculator.
Geometrical aids such as Combined Graph and Mathematical Demonstration Board, Braille Protractors, Scales, Compasses and Spar Wheels
Electronic measuring devices such as Calipers, Micrometers, Comparators, Gauges, Gauge Block Levels, Rules, Rulers and Yardsticks.
Drafting, Drawing Kits, Tactile Displays
Specially designed Clocks and Watches for physically challenged persons
Orthopaedic equipment mentioned under the heading No.90.21 of the First Schedule
Wheel Chairs mentioned under heading No.87.13 of the First Schedule
Artificial electronic larynx and spares
Artificial electronic ear Cochlear implant
Speaking Books in the form of audio cassettes, Compact Discs or other sound reproductions and large-print books, braille embossers, talking calculators and thermometers.
Devices for the mechanical or the computerised production of Braille and recorded materials such as Braille Computer Terminals and Displays, Electronic Braille, Transfer and Pressing Machines and stereotyping machines
Braille Paper
All substantial equipment such as articles, instruments, apparatus, specially created for the benefit of blind people
Aids for enhancing movements of the blind such as electronic orientation and obstacle identifying devices and white walking sticks
Technical aids for the purpose of education, rehabilitation, vocational training and employment of the blind people such as Braille typewriters, Braille watches, teaching and learning aids, games and other devices and vocational aids specifically designed for the benefit of blind persons
Assistive listening devices, audiometers
External catheters, special jelly cushions to prevent bedsores, stairlift, urine collection bags
Devices and implants for severely handicapped patients and joints replacement and spinal equipment and implants which include bone cement.
As per the statement released by the Government, the GST rate applicable on the raw materials and other inputs for the production of the above mentioned Assistive Devices is 18 %.
The concessional 1 of 5% on these devices would allow their domestic manufacturers to obtain Input Tax Credit of GST paid on their inputs and raw materials.
In case the GST rates of output supply is lesser than the GST rate on inputs utilised for its manufacturing, then the GST law notifies for the refund of accumulated Input Tax Credit. Thus, the domestic assistive device manufacturers can claim refund of any accumulated Input Tax Credit. It would reduce the rate of domestically manufactured goods as compared to the pre-GST rule.
Whereas, the imports of the assistive devices would be charged at zero rate for the devices that are excluded from GST. The domestically manufactured devices will continue to endure the burden of input taxes, mounting the product cost.
The 5% concessional GST rates on the devices would benefit both the physically challenged persons and the domestic manufacturers of the assistive devices.

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Frequently Asked Questions

Common questions about Concessional GST Rate for Physically Challenged Persons Items.

The purpose of providing concessional GST rates for special items for physically challenged persons is to reduce the burden on domestic manufacturers of these assistive devices and equipment, and to make them more affordable for physically challenged individuals. By lowering the GST rate from 18% to 5%, the cost of production and the final price of these items can be reduced, benefiting both the manufacturers and the end-users who require these special items.

The items covered under the concessional GST rate of 5% include a wide range of assistive products and rehabilitation equipment for physically challenged persons, such as Braille writers, walking sticks, optical and environmental sensors, arithmetic aids, geometric aids, electronic measuring devices, drafting and drawing kits, specially designed clocks and watches, orthopaedic equipment, wheelchairs, artificial electronic larynx and ear, cochlear implants, speaking books, Braille embossers, assistive devices for the blind, and devices for enhancing mobility and independence.

The concessional GST rate of 5% on the final products allows domestic manufacturers to obtain Input Tax Credit (ITC) of GST paid on their inputs and raw materials. This means they can claim a refund of any accumulated ITC, reducing the effective tax burden on the manufacturing process. As a result, the cost of domestically manufactured goods can be lower compared to the pre-GST regime, making them more competitive in the market.

According to the article, the GST rate applicable on the raw materials and other inputs for the production of the assistive devices for physically challenged persons is 18%.

The article mentions that the imports of the assistive devices for physically challenged persons would be charged at zero rate for the devices that are excluded from GST. This means that imported assistive devices may have a cost advantage over domestically manufactured ones, as domestic manufacturers still have to bear the burden of input taxes, increasing their product cost.

The concessional GST rate on special items for physically challenged persons benefits both the physically challenged individuals and the domestic manufacturers of these assistive devices. The lower GST rate makes the devices more affordable for physically challenged individuals, while also reducing the tax burden on domestic manufacturers, enabling them to offer competitive prices.

The article does not explicitly mention the previous GST rate on these special items for physically challenged persons. However, it states that the rate has been revised from the normal 18% to the concessional 5%, implying that the earlier rate was likely 18%.

The concessional GST rate of 5% applies to a specific list of twenty items for physically challenged persons, which includes various assistive products and rehabilitation equipment mentioned in the article.

By providing a concessional GST rate on special items for physically challenged persons, the government is taking steps to make these essential assistive devices and equipment more accessible and affordable. This aligns with the broader efforts to support and empower physically challenged individuals by removing financial barriers and promoting their independence and quality of life.

The article does not mention any specific plans to expand the list of items covered under the concessional GST rate for physically challenged persons. However, such initiatives are often reviewed and updated periodically based on feedback, demand, and evolving needs of the target population.