GST concession to PwDs

The Ministry of Finance, Government of India, has allowed a concessional rate Goods and Services Tax (GST) of 18% as against the applicable rate of 16% and 24% (a) on cars being able to be driven by the physically disabled; or (b)on cars which has been suitably designed to be able to be driven by physically disabled; or (c) on cars meant for physically disabled.

Concessional rate of GST to persons with disability is applicable to those persons who are having orthopedic physical disability of equal to greater than 40 % disability irrespective of the fact that the applicant drives the vehicle himself or otherwise. GST concession is granted by Ministry of Finance vide its notification dated 28th June 2017, amended on 30th September, 2019.

Vehicles Allowed: 
The concession can be availed for following motor vehicles of length not exceeding 4000 mm only, namely

  • Petrol, LPG or compressed natural gas driven vehicles of engine capacity not exceeding 1200 cc
  • Diesel driven vehicles of engine capacity not exceeding 1500 cc
Procedure: In supersession of all previous guidelines issued by Department of Heavy Industry, Revised Guidelines for issue of GST concession certificate for purchase of vehicles by the persons with Orthopedic Physical Disability vide notification 24th October 2019 details the procedure.

As per the revised guidelines, the applicant with orthopedic disability shall:

(a) Make an application to Department of Heavy Industry (DHI) in the format prescribed at Annexure A.  

(b) Submit a Medical certificate duly signed and countersigned in prescribed format placed at Annexure B. These guidelines were further modified vide OM dated 25 March 2020 with the insertion of:

"Applicants already having a Unique Disability Card issued by GoI/ Disability card issued by State Govt./District authority, wherein the nature and percentage of disability is clearly specified, are not required to furnish Medical Certificate stipulated in Annexure 'B' of the application."

(c) The October 2019 guidelines had the requirement of 
submitting the copy of Income Tax Return (ITR) filed for the last three years by the applicant but this was removed in amended guidelines in March 2020 and now applicants are NOT required to furnish their ITR.

(d) S
ubmit a Self-declaration stating that he has not availed this concession in the last five years and he will not dispose of the vehicle after availing the GST concession for a period of 5 years from the date of purchase in prescribed format placed at Annexure C

(e) Among other details, applicant is required to submit the details of Vehicle Model they intend to purchase along with name of dealer from whom vehicle will be purchased and name of RTO, where vehicle will be registered.

(f) After processing of the application, DHI is expected to issue certificate for availing the GST concession in the prescribed format placed at
 Annexure D to the applicant within a period of 4 weeks from the date of receipt of application, complete in all respect.

(g) The said Certificate for availing the GST concession would be valid for a period of three months from date of issue of the certificate and the vehicle would have to be purchased by the applicant within this three months period to avail the concession.

(h) DHI will send a copy of the certificate to respective dealer, Original Equipment Manufacturers (OEM) and Regional Transport Office for their record and cross check/confirmation. 

(i) Car Dealers would be required to charge concessional rate of GST to the individual in whose name GST certificate is issued and stamp the invoice of all such cars purchased with GST concession with hologram symbol of 'To be registered as Adapted vehicle’. 

(j) All vehicles sold on the strength of certificate issued by DHI and with concessional GST would be registered as “Adapted Vehicle”, as per new Motor Vehicle Act 2019. Ministry of Road Transport and Highways (MORTH) would issue necessary instructions in this regard.

Relevant Circulars on GST Concession to PwDs
Ministry of Finance GST circular amended on 30 September, 2019
Finance Sept 2019.pdf Finance Sept 2019.pdf
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Revised GST Guidelines for PwDs amended on 24th October, 2019
Revised GST.pdf Revised GST.pdf
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Partially modified guidelines 2020 allowing UDID in place of medical certificate & abolishing submission of ITR
UDID.pdf UDID.pdf
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Partailly modified guidelines 2019 indicating Aadhar number not mandatory but optional
Aadhar.pdf Aadhar.pdf
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Type : pdf
The Excise Duty Concession (pre-GST terminology) controversey settled


Central Govt has finally acted on Dr Singh's representation and quashed manufacturer's certificate. Instead, only RTO's certificate will be required.

Media report:

Centre amends duty concession for disabled. Times of India. 26 May 2016

Gazette notification dated 21 April 2016 

Gazette addendum dated 2 May 2016

Apr.pdf Apr.pdf
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May.pdf May.pdf
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Type : pdf

Discriminatory Guidelines by Marutu Suzuki India Limited (MSIL)

Despite the clear cut guidelines by the Central Government, often the customers with disabilities are harassed. This is in part due to lack of awareness, confusion of excise duty waiver with road tax exemption and discrimination by manufacturers. Take for example the case of biggest manufacturer in India -MSIL. They provide the excise duty concession only to customers with left leg disability which is discriminatory.

Maruti's (Nexa) discriminatory guidelines for excise duty concession 

Our letter to Secretary, DHI to stop MSIL's discrimination against customers with right leg disability

Petition in Court of Chief Commissioner for Persons with Disabilities, Delhi

Maruti guidelines.pdf Maruti guidelines.pdf
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Secy_DHI.pdf Secy_DHI.pdf
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232_CCPD_Excise.pdf 232_CCPD_Excise.pdf
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Only left is right: Why disabled drivers miss discount trip. Times of India. 4 April 2016

Vijay Raj Khariwal vs Union of India & Ors. CW Case No. 2697 of 2005. High Court of Rajasthan upheld the right of customer with right leg disability to avail excise duty concession on car.

C. Paulraj vs Secretary. WP 9797 of 2008 & 11415 of 2008. The landmark decision where Judges says that Motor Vehicles Act do not prohibit a disabled person to adapt the vehicle as 'invalid carriage'. Similar verdict was given in High Court case R Ramaswamy vs Secretary, WP 4482 of 2008.

 Insurance Concession

A 50% discount is being given on insurance for a vehicle being specially designed/modified for a "blind, handicapped and mentally challenged person" as per IMT 12 (pages 183,184) of India Motor Tariff.

IMT.pdf IMT.pdf
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Toll tax exemption

Gazette notification of National Highways Fee (Determination of Rates and Collection) Amendment  Rules, 2016 dated 8th June 2016.

Circular No.NHAI/CO/11//2016 dated 13th June on the subject “Amendment to fee rules (Notification No. GSR 585E dated 8 June 2016 on exemption from payment of user fee in case of a mechanical vehicle specially designed and constructed for use of a person suffering from some physical defect or disability”
Gazette toll exemption.pdf Gazette toll exemption.pdf
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NHAI.pdf NHAI.pdf
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Type : pdf
Driving Licence
Procedure for guidelines for grant of driving licenses and registration certificates to persons with disabilities & gazette notification

Driving Licence

Can a person with hearing impairment apply for a driving licence?

Yes. National Association of the Deaf filed a PIL in Delhi High Court through Human Rights Law Network whereby the Court gave a landmark judgement that deaf people can undertake driving license test. Prior to this the MV Act automatically disqualified them. The judgement in this WP(C) 10849/2009 can be read here.

Exemption of Road Tax 

The driving license issued to persons with orthopedic disabilities in India is under 'invalid carriage'. Ideally this word should go and replaced as 'adapted/altered carriage'. Since the manufacturers are not manufacturing any modified vehicles for persons with disabilities, we have to go to the local fabricators to get the modification done. Where are the big talks of Corporate Social Responsibility. The above quoted two judgments makes it clear that modifications in the vehicle are within the ambit of Motor Vehicles (MV) Act. Once registered under 'invalid carriage', a person with disability is entitled to get the road tax exemption as well. However, may times the RTO's harass persons with disabilities.

"Ability on Wheels" book is penned by Harish Kumar, is an attempt to answer all the questions which come to the mind of a person with disability when he dreams of buying a vehicle & driving on his own. This book also provides insights on safe driving, which are applicable to all & hence even people without disabilities can read this book & learn a lot of things about driving which they may have been ignorant of. This is a recommended book for knowing your rights. You can buy it from this link.

Car modification vendors : See the list on external website

Many manufacturers have turned away wheelchair users as they just can't believe that a wheelchair user can drive a car. This video is for them. Since manufacturers are not modifying vehicles for disabled, a disabled person won the National Award in 2009 for developing a cost effective product aimed at improving the life of persons with disabilities. We are proud of you Dr Lokesh Balhara! 

We are proud of Mr Harish Kumar and Mr Ravi Attri.


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