**Executive Summary**
This document is a response to an unstarred question in the Rajya Sabha on December 19, 2025, regarding the discontinuation of GST concession certificates for persons with locomotor disabilities. The response clarifies that the GST rate for small cars has been rationalized to a uniform 18% for all, including orthopedically disabled persons, based on GST Council recommendations. Consequently, there is no longer a requirement for GST concession certificates under the GST Exemption Certificate Scheme.
**Key Points / Main Content**
* **Background:** The Ministry of Heavy Industries (MHI) previously issued GST concession certificates for small cars to eligible persons with orthopedic disabilities, following a Department of Revenue notification on September 30, 2019.
* **GST Council Recommendations:**
* The GST Council, in its 56th meeting on September 3, 2025, recommended rationalizing the existing GST rate structure into a simpler two-rate structure.
* The Council did not recommend any change in the 18% GST rate applicable to small petrol/diesel-driven motor vehicles for persons with orthopedic physical disability.
* The Council recommended rationalization of the GST rate on small petrol/diesel-driven motor vehicles from 28% to 18%.
* **Current Status:** The MHI notified on October 8, 2025, that a uniform GST rate of 18% on small cars is applicable to all persons, including orthopedically disabled persons, in view of the GST rates rationalization by the Ministry of Finance.
* **Concession Certificate Discontinuation:** As a result of the uniform GST rate, there is no longer a requirement for the issuance of a GST concession certificate for orthopedically disabled persons under the GST Exemption Certificate Scheme.
* **Fiscal Impact Study:** MHI has not conducted a study on the fiscal impact or additional revenue expected from the withdrawal of the concessional GST rate.
**Impact Analysis**
**Stakeholder: Orthopedically Disabled Persons**
* **Impact**: Orthopedically disabled persons will no longer receive GST concession certificates for purchasing small cars. However, they will now benefit from a uniform GST rate of 18% like all other consumers, on the purchase of small cars.
* **Action Required**: No longer need to apply for a GST concession certificate under the GST Exemption Certificate Scheme when purchasing small cars.
Key Entities Referenced
Goods and Services Tax (GST): Tax system impacting concessional rates for vehicles purchased by persons with locomotor disabilities
Ministry of Heavy Industries (MHI): Ministry responsible for issuing GST concession certificates
GST Council: Recommends GST rates, impacting rates for vehicles for persons with orthopaedic disabilities
Rights of Persons with Disabilities Act, 2016: Law whose provisions may be violated by the discontinuation of GST concession
GST Exemption Certificate Scheme: Scheme under which GST concession certificates were issued
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
RAJYA SABHA
UNSTARRED QUESTION NO. 2308
ANSWERED ON 19.12.2025
DISCONTINUATION OF GST CONCESSION CERTIFICATE FOR PERSONS WITH
LOCOMOTOR DISABILITIES
2308. SMT. RANJEET RANJAN:
Will the Minister of Heavy Industries be pleased to state:
(a) the reasons for discontinuing the GST concession for persons with locomotor disabilities on
the purchase of vehicles;
(b) whether the Ministry is aware that this decision violates the provisions contained in the
Rights of Persons with Disabilities Act, 2016 and India’s commitment under the UN Convention
on the Rights of Persons with Disabilities, if so, the manner in which the Ministry intends to
address the issue; and
(c) whether Government has estimated the fiscal impact or additional revenue expected from the
withdrawal of the concessional GST rate, if so, the projected revenue gain for the financial years
2025–26 and 2026–27?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) & (b): The Ministry of Heavy Industries (MHI) earlier issued GST concession
certificates for small cars to eligible persons with orthopaedic disabilities, as per the Department
of Revenue’s Notification dated 30.09.2019. As per inputs received from the Department of
Revenue, GST rates are notified based on the recommendations of the GST Council, a
constitutional body comprising representatives of the Union and State Governments. In its 56th
GST Council Meeting held on 03.09.2025, the Council recommended rationalisation of the
existing four-tier GST rate structure into a citizen-friendly “Simple Tax” two-rate structure. The
Council did not recommend any change in the GST rate applicable to small petrol/diesel-driven
motor vehicles for persons with orthopaedic physical disability, which continued to attract 18%
GST. Further, the Council also recommended rationalisation of the GST rate on small
petrol/diesel-driven motor vehicles from 28% to 18%.
Subsequently, the Ministry of Heavy Industries (MHI) on 08.10.2025 notified that, in
view of the rationalisation of GST rates by the Ministry of Finance, the uniform GST rate of
18% on small cars is applicable to all persons, including orthopedically disabled persons.
Accordingly, there is no requirement for issuance of a GST concession certificate for
orthopedically disabled persons under the GST Exemption Certificate Scheme.
(c): No such study has been carried out by MHI.
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