This article will help readers to know about GST Exemption Certificate Scheme which allows GST concessions to persons with disabilities (PwDs). It covers eligibility, process, benefits, common challenges, application tracking, required documents and recent updates which are important for benefits seeker.
Table of Contents
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- What is the GST Exemption Certificate Scheme for PwDs?
- Who is Eligible for the Scheme?
- Types of Cars Eligible for GST Concession
- Documents Required for GST Exemption Scheme
- How to Apply for the Scheme
- Application Status Tracking
- Updating Vehicle Details
- Common Challenges & Solutions
- Recent Updates & Amendments
- Conclusion
The Indian government, through the Department of Heavy Industries, has started an important programme called the Goods and Services Tax (GST) Exemption Certificate Scheme for Persons with Disabilities (PwDs) to help disabled people with their finances. PwDs with at least a 40% disability can get GST breaks when they buy a car by getting an exemption certificate. This makes transport easier to get to and cheaper. Check out this complete guide to learn if you qualify, how to apply, and what the rewards are of this plan.
What is the GST Exemption Certificate Scheme for PwDs?
The GST Exemption Certificate Scheme for PwDs enables individuals with a disability percentage equal to or greater than 40% to claim a concession on the GST levied on the purchase of a car. This scheme recognizes the unique mobility challenges faced by PwDs and seeks to alleviate the financial burden associated with acquiring a vehicle.
Who is Eligible for the Scheme?
To qualify for the GST exemption certificate for PwDs, you must meet the following criteria
- Possess a valid Disability Certificate indicating a disability percentage of 40% or more.
- The purchased car must be for personal use and not for commercial purposes.
- The car should be registered in the name of the PwD or jointly with a family member.
Specific eligibility criteria may vary, so it is crucial to review the official guidelines provided by the Department of Heavy Industries.
Also read: Business loans for Physically Disabled Person
Types of Cars Eligible for GST Concession
The GST concession is applicable on the purchase of the following types of cars:
| Car Type | Engine Capacity (Petrol/CNG) | Engine Capacity (Diesel)</Engine Capacity (Diesel)> |
| Petrol/CNG driven cars | Not exceeding 1200 cc | Not exceeding 1500 cc |
| Diesel driven cars | Not exceeding 1500 cc | Not exceeding 1500 cc |
Documents Required for GST Exemption Scheme
To apply for the GST exemption certificate for PwDs, you will typically need the following documents:
- Valid Disability Certificate: This is the most crucial document proving your disability status and percentage. It should be issued by a recognized medical authority.
- Car Purchase Invoice: The invoice for the new car you purchased, clearly mentioning the price, GST amount, and other relevant details.
- Identity Proof: Aadhaar card, PAN card, or any other government-issued identity document.
- Address Proof: Aadhaar card, utility bills, or any other document proving your residential address.
- Income Proof: Income tax returns for the last three years or salary slips.
- Passport-size Photograph: A recent photograph of the applicant.
- Affidavit: A self-declaration stating that you have not availed yourself of this concession in the last five years and that you will not dispose of the vehicle for five years after purchase.
- Vehicle Details: Information about the vehicle model, dealer’s name, and RTO (Regional Transport Office) where the vehicle will be registered.
How to Apply for the Scheme
The application process for the GST exemption certificate for PwDs involves the following steps:
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Registration: Register yourself on the online portal of the Department of Heavy Industries.
Source:https://gecs.heavyindustries.gov.in/home/userRegistration
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Fill in the Application Form: Provide accurate details and upload the required documents, including the Disability Certificate and car purchase invoice.
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Verification and Approval: The authorities will verify the information and documents submitted. If approved, the exemption certificate will be issued.
Application Status Tracking
The dashboard allows you to track the progress of your application in real time. You can view updates and check whether your application is under review, approved, or rejected.
Updating Vehicle Details
Should any changes occur to your vehicle’s information, such as obtaining a recent registration number or updating insurance details, the GST portal allows for easy modification. Simply log in to your dashboard and navigate to the vehicle details section. You can then edit and save the updated information, ensuring your records remain accurate and aligned with the GST exemption scheme’s requirements.
Common Challenges & Solutions
While the GST Exemption Certificate Scheme offers many benefits, one may encounter some challenges during the application process. Some common issues include:
| Challenge | Solution |
| Difficulty in obtaining a Disability Certificate | Seek guidance from relevant authorities or medical professionals to obtain the certificate promptly. |
| Technical glitches on the online portal | Try accessing the portal at a different time or contact the helpdesk for assistance. |
| Delays in processing | Follow up with the authorities through the provided channels to ask about your application’s status. |
To overcome these challenges, ensure that you thoroughly understand the requirements, submit accurate information, and follow up with the GST Seva Kendra if necessary.
Recent Updates & Amendments
The GST exemption scheme for PwDs is not static; it evolves to better serve the needs of individuals with disabilities and align with changing regulations. In recent times, the Department of Heavy Industries has introduced several key updates and amendments:
- Expanded Eligibility: The scheme has been broadened to include a wider range of disabilities, ensuring that more PwDs can benefit from the GST concession on car purchases.
- Increased Concession Amount: The percentage of GST concession available has been increased for certain categories of vehicles, further reducing the financial burden for eligible PwDs.
- Simplified Documentation: The required documentation for the application process has been simplified to make it more accessible and user-friendly for PwD applicants.
- Enhanced Portal Functionality: The online portal has undergone upgrades to improve its functionality, making it easier for users to track applications, update information, and access relevant resources.
It is crucial for individuals with disabilities and their families to stay informed about these updates and amendments. Regularly visiting the official website of the Department of Heavy Industries and checking for notifications will ensure that you have the latest information and can take full advantage of the scheme’s benefits.
Remember, staying informed and proactive is key to maximizing the benefits of this scheme and ensuring a smooth application process. If you have any doubts or queries, you can reach out to the Department of Heavy Industries or seek guidance from relevant authorities.
Conclusion
The GST Exemption Certificate Scheme for PwDs is a commendable initiative that aims to enhance the lives of individuals with disabilities by making car ownership more accessible. By following the guidelines and utilizing the online portal, you can successfully apply for the exemption and enjoy the financial benefits it offers.
*This article is for informational purposes only. All are requested to consult with a GST practitioner/CA or relevant for professional advice.
FAQs
Can I claim the GST exemption if I am purchasing a used car?
Can I transfer the GST exemption certificate to another person?
Is the GST exemption applicable to modified cars for PwDs?
Can I apply for the exemption if the car is registered in the name of my spouse or a family member?
A product manager with a writer’s heart, Anirban leverages his 6 years of experience to empower MSMEs in the business and technology sectors. His time at Tata nexarc honed his skills in crafting informative content tailored to MSME needs. Whether wielding words for business or developing innovative products for both Tata Nexarc and MSMEs, his passion for clear communication and a deep understanding of their challenges shine through.
Providing PwDs with gst exemption, especially for buying vehicles is a very good decision by the government, as it allows such people to get a vehicle, which is a requirement for them, at a much cheaper rate. One of my friends was really able to benefit from this as he was then able to install modifications in his car which would help his entry/exit, from the saved money.
Nice to see the government rolling out meaningful concession for people who actually need such assistance. The process has also been made to be simple and foolproof to ensure ease of access.
I was going through the document detailing the GST concession eligibility for persons with disabilities when purchasing a car. The document provides clear guidelines for petrol and diesel vehicles. However, I noticed that there is no mention of electric vehicles.
I would like to clarify how GST concessions apply to electric vehicles for persons with disabilities. Could you please provide guidance or direct me to the relevant information regarding this matter?
That is a great question Gowri. We will improve this article with addtional information on the same and will update here.