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GST Concession on Cars for Persons with Disability (PwD)

GST Concession on Cars

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:

GST on Car for PwD

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.