Supreme Court Seeks Centre's Response on Plea Concerning GST Concession on Car Purchase by Persons with Disabilities

The Supreme Court has requested a response from the central government and other relevant authorities regarding a petition asserting that the concessional Goods and Services Tax (GST) benefits on car purchases for individuals with disabilities have been effectively nullified.

A bench comprising Justices Vikram Nath and Sandeep Mehta issued notices to the Centre and other entities, including the Goods and Services Tax (GST) Council, seeking their responses within four weeks. The court's action came in response to a plea filed by a petitioner who is visually impaired. The plea contends that recent actions by authorities have essentially eliminated the GST concessions previously available to persons with disabilities for purchasing cars, thereby impacting their access to transportation.

The issue of GST concessions for vehicles purchased by persons with disabilities has also been raised in the Delhi High Court. In October 2025, the Delhi High Court questioned the Central government regarding the effective withdrawal of GST concessions for differently-abled individuals on car purchases. A division bench, led by Chief Justice DK Upadhyaya and Justice Tushar Rao, directed the standing counsel to seek instructions on the matter and respond by December 17.

The Delhi High Court was addressing a petition filed by the All India Confederation Of The Blind (AICB), which challenged a notification issued by the Union Ministry of Heavy Industries. The notification reduced the GST rate on vehicles from 28% to 18% but did not grant special concessions for differently-abled individuals. Previously, a 28% GST was levied on vehicles, with a concessional rate of 18% for persons with locomotor disabilities. The new notification prescribes the same 18% GST rate for all individuals, including those with orthopedic disabilities.

Advocate Rahul Bajaj, representing the petitioner, argued that this move violates the Rights of Persons with Disabilities Act (RPwD Act). The High Court questioned why a corresponding proportionate decrease in the GST rate for orthopedically and visually disabled persons could not be implemented.

In July 2025, the Delhi High Court sought responses from the central government on a plea concerning GST concessions on vehicle purchases for persons with disabilities, specifically noting the exclusion of individuals with visual impairments. The plea, filed by the All India Confederation of the Blind (AICB), highlighted that the benefit was primarily extended to those with orthopedic physical disabilities with a benchmark disability of 40% or more.

Currently, subsidized modified vehicles are available only to individuals with orthopedic disabilities having a benchmark disability of 40% or more, and the concession applies only to four-wheeled vehicles. The AICB argued that excluding persons with visual impairments from the concessional GST scheme for motor vehicle purchases violates the equal treatment of persons with disabilities.