GST Concession on Cars for Persons with Disability (PwDs)

The living cost for a physically challenged community in India is comparatively high. The public transportation can’t conveniently be used by the community as there are no adequate wheelchair provisions available for them. The impeding situations they face in their everyday life hinders them from obtaining their fundamental rights like education, employment and other economic benefits in the country. Government has been implementing several facilities, policies,

schemes, financial and operational measures to help improve their economic status. Department of Heavy Industries and Public Enterprises, Ministry of Finance, has rationed a concession on GST from 28% to 18% for the purchase of cars for the disabled, on 28th June 2017. This article spots light on the guidelines and the conditions of the amendment.

Eligibility Conditions

The Government has revised the GST rate from 28% to 18% with 0% Cess fee for the purchase of cars for the physically challenged. The Deputy Secretary of the Department of Heavy Industries and Public Enterprises has the authority to evaluate and certify the concession based on the following conditions.

The cars should be specifically designed and must be able to be driven by physically disabled persons and
The buyer should submit the affidavit stating that he/she wouldn’t dispose of the vehicle for the next five years after their purchase.

Required Documents

The physically disabled persons should submit the following documents:

An Application Form in the format as prescribed
A medical certificate provided by the medical officer of the Government hospital asserting that the disabled person is fit to drive the car.
Self-certification to confirm that the beneficiary hadn’t availed any concession in the past five years and wouldn’t dispose the car purchased on the concessional GST for the next five years.
Beneficiaries who are retrofitting the car to suit their need should present an additional certificate issued by the District Road Transport Officer.

The revised guidelines can be accessed below:

Application Procedure

The beneficiaries should submit the

supporting documents to the address mentioned below:

The Under Secretary (AEI Section),
Department of Heavy Industries,
Room No.428, Udyog Bhavan,
New Delhi - 110011

The Department of Heavy Industries and Public Enterprises evaluates the application form and issues the certificate within 4 weeks from the date of submission of application. The beneficiaries can produce it to the car dealers

after obtaining the certificate from the Ministry, to avail the GST concession.

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Frequently Asked Questions

Common questions about GST Concession on Cars for Persons with Disability PWD.

The Government of India has revised the GST rate from 28% to 18% with 0% Cess fee for the purchase of cars specifically designed for persons with disabilities (PwDs). This concession aims to make car ownership more affordable for the physically challenged community.

The GST concession is available for physically disabled persons who can provide a medical certificate stating they are fit to drive the car. Additionally, they must submit an affidavit confirming they will not dispose of the vehicle for five years after purchase.

The required documents include an application form, a medical certificate from a government hospital, a self-certification stating the beneficiary has not availed any concession in the past five years, and a certificate from the District Road Transport Officer if the car is being retrofitted.

Eligible beneficiaries must submit the required documents to the Under Secretary (AEI Section), Department of Heavy Industries, Room No.428, Udyog Bhavan, New Delhi - 110011. The Department will evaluate the application and issue a certificate within four weeks, which can be presented to the car dealer.

Yes, the beneficiary must submit a self-certification stating that they have not availed any concession in the past five years and will not dispose of the car purchased under the concessional GST rate for the next five years after purchase.

No, the concession is applicable only for cars specifically designed and modified for persons with disabilities to drive comfortably. Regular car models without any modifications may not be eligible for the concession.

The Deputy Secretary of the Department of Heavy Industries and Public Enterprises, Ministry of Finance, has the authority to evaluate and certify the applications based on the eligibility conditions and submitted documents.

The GST concession on cars for persons with disabilities aims to improve their mobility and independence, enabling them to access education, employment, and other economic benefits more conveniently. It helps alleviate the high living costs and challenges faced by the physically challenged community.

The article does not provide specific information regarding availing the GST concession for used or second-hand cars. However, the concession is typically applicable for new car purchases, and additional requirements or restrictions may apply for used cars.

The article does not mention any specific limit on the number of times the GST concession can be availed by an eligible beneficiary. However, the self-certification requirement suggests that the concession cannot be claimed more than once within a five-year period.