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
-
- What is the GST Exemption Certificate for a disable person?
- Who is Eligible for the exemption?
- Types of Cars Eligible for GST Concession
- Documents Required for GST Exemption
- How to Apply for the GST exemption
- Application Status Tracking
- Updating Vehicle Details
- Common Challenges & Solutions
- Recent Updates & Amendments
- Conclusion
The Department of Heavy Industries has introduced a GST exemption scheme for Persons with Disabilities (PwDs). Such Individuals with a disability (more than 40%) are eligible for GST concessions when purchasing a vehicle, provided they obtain a GST exemption certificate. This scheme is to bring transportation more accessible and affordable for such people.
The person must meet the specified disability eligibility criteria. He/She has to follow the application process as per govt norms. The Govt. charges heavy GST on vehicle purchasing. It can significantly reduce the cost for individuals with disabilities.
For more details on eligibility, application procedures, and benefits, visit the official website of the Department of Heavy Industries or contact their helpline.
What is the GST exemption certificate for a disable person?
The GST Exemption Certificate Scheme allows a disabled person ( with a 40% or more disability) to avail of exemption of the GST tax while buying a vehicle. The objective of this exemption to empower such disable people for transportation and mobility accessibility.
Who is Eligible for the exemption?
To get the GST exemption certificate, an applicant should fulfil the requirement as per govt norms:
- Disability requirement: An applicant must have a valid disability certificate not more than 6 months old and confirming 40% or more disability as per listed conditions.
- Usage restriction: The vehicle must be used for personal use only. It can not be used for any other purpose.
- Ownership condition: The vehicle must be registered in the name of the disabled person only.
We still advise you to check the govt portal to know the exact requirements as per Department of Heavy Industries.
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) |
| Petrol/CNG cars | Not more than 1200 cc | Not more than 1500 cc |
| Diesel cars | Not more than 1500 cc | Not more than 1500 cc |
Documents Required for GST Exemption Scheme
To apply for the GST Exemption Certificate for disabled person, the following documents are required:
- Disability certificate: A medical document from a recognized authority verifying the disability and its percentage. It should not more than 6 months old. If it is, then please get it renewed before applying for this exemption.
- Purchasing invoice copy: An official copy of purchasing invoice with all details like car’s price, GST amount, etc…
- Identity proof of disabled person: Aadhaar card, PAN card, or any other government-issued identity document.
- Address proof of disabled person: Electricity bill, Gas bill, ration card or any official document confirming the applicant’s residential address.
- Income proof: Income tax returns for the last 3 years or recent salary slips.
- Passport-size Photograph: A recent photo of the disabled person who is applying for it.
- Affidavit: A self-declaration stating that the applicant has not availed of this concession in the last five years and will not sell or transfer the vehicle for five years from the date of purchase.
- Vehicle Details: Information about the car model, dealer’s name, and RTO registration details etc…
How to Apply for the GST exemption?
The application process for the GST exemption certificate for disable people involves the following steps:
Registration: Register on the online portal of the Department of Heavy Industries.
Source: Register Here
Fill in the Application Form: Provide accurate details and upload the required documents, including the Disability Certificate and car purchase invoice.
Verification and Approval: The authorities will verify the submitted information and documents. If approved, the exemption certificate will be issued.
Application Status Tracking
Applicants can track the real-time status of their application. They can check the status of their application, whether their application is pending, 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.
What are the common challenges and possible solutions?
There are some common challenges and their solutions given below:
| 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 disabled person is subject to updates to better address the needs of differently abled individuals while considering the changing regulatory environment. Recently, the Department of Heavy Industries announced several important updates and amendments:
- Inclusive Approach: The scheme now covers various types of disabilities, allowing more PwDs to avail of the GST concession on vehicle purchases.
- Increased Concession Amount: The percentage of GST concession for specific vehicle categories has been increased to further reduce the financial burden on eligible PwDs.
- Reduced Documentation: The application process has been simplified, making it more accessible and user-friendly for PwD applicants.
- Portal Upgrades: The online portal has been enhanced to help users track applications, update information, and access relevant details more efficiently.
Persons with disabilities and their families should stay informed about these updates and modifications. To maximize the benefits of this scheme, it is advisable to visit the official website of the Department of Heavy Industries regularly and stay updated with notifications.
Conclusion
The GST Exemption Certificate Scheme for Disabled person is a significant initiative aimed at making vehicle ownership more accessible for individuals with disabilities. By following this guide and utilizing the online portal, eligible applicants can successfully apply for the exemption and enjoy the financial benefits. Staying informed and adhering to the process ensures a smooth application experience.
*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.
If the person with disability dont have the ITR , will be able to get GST concession ?
Sir,I am not a assesee.can I get concession for purchase of new car?
GST exemption holder (applicable to businesses only) can availabe this only.
How long will it take for the certificate process after submission of application? Sir.
Sir can I get GST exemption for EV car. If so how much percentage. I’m orthopaedic physically challenged person with 90% disability. I have been using Chevrolet Beat since 12years modified. Now wish to change the vehicle due to its frequent repairs. Then the time I don’t know about the facility of GST exemption and Life tax exemption. So please give me clarity. I have to travel 110km everyday for my duty. So thought of going for an EV vehicle. Please give clarity sir. Thank you