Supreme Court Seeks Centre's Response On Plea Seeking GST Concession For Car Purchase By Persons With Disabilities

The Supreme Court recently issued notice on a petition filed by a person suffering visual impairment seeking that the government revive its GST Concession scheme for the purchase of cars by persons with orthopaedic disability and extend it to all Persons with Disabilities, irrespective of the nature of their disability.

A bench of Justices Vikram Nath and Sandeep Mehta passed the order, after hearing counsel for the petitioner, who argued that the Union has taken different stands before different High Courts, which has resulted in conflicting opinions on the government's now-discontinued scheme. The counsel also informed the Court that the scheme existed in one form or another since 1999 but came to be withdrawn in 2025.

Initially, the bench asked the petitioner to obtain a view from the Bombay High Court, as he resides in Maharashtra. However, when he cited urgency, highlighting that his wife is pregnant and they have been trying to get a car for a year, the bench issued notice. Notably, the counsel also apprised the Court that when the Bombay High Court was approached against rejection of the concession, the Union first came up with a stand that concession was applicable to all but later withdrew the same and came out with a policy denying the concession.

Briefly put, the petitioner and his wife are persons with benchmark disability in terms of the Rights of Persons with Disabilities Act. They suffer 100% visual impairment since birth. Working in Pune, they are compelled to use public transport, which lacks basic accessibility features. Private hire being unaffordable, they intend to buy a car for their safety and family life.

The petitioner seeks revival of the Union's GST Exemption Certificate Scheme, which offered special concessions to orthopedically disabled persons seeking to purchase a car. He pleads that instead of persons suffering orthopedic disability, the concession be extended to all PwDs, irrespective of the nature of their disability.

Earlier, 28% GST was levied on vehicles with a concessional rate of 18% for persons with locomotor disability. A recent notification issued by the Union Ministry of Heavy Industries reduced GST rate on vehicles from 28% to 18%, without granting any special concessions for the differently-abled. It prescribes the same rate of 18% GST for all persons, including Orthopedically Disabled Persons.

Recently, the Delhi High Court questioned the Union government about the withdrawal of the concession. "Why corresponding proportionate decrease in the rate of GST to be levied from persons who are Orthopedically and Visually Disabled Persons, cannot be brought into effect" it wondered.

Appearance: Advocates Rishit Vimadalal, Punit Agarwwal, Chinmayi Chatterjee and Pritam Giriya (for petitioner)

Case Title: KULDIPAK RAJESH PRASHAD Versus UNION OF INDIA AND ORS., W.P.(C) No. 1140/2025