GST Rate for Special Items of Physically Challenged Persons

Concessional GST Rate for Special Items of Physically Challenged Persons

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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 GST rate 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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