The Ministry of Heavy Industries has issued Notice on October 08, 2025, announced the discontinuation of Goods and Services Tax (GST) concession certificates for persons with orthopaedic physical disability (PwOPD) on the purchase of vehicles. This decision follows a clarification from the Ministry of Finance, Department of Revenue (TRU), regarding the applicable GST rates.
The clarification, issued via Office Memorandum dated September 29, 2025, has streamlined the taxation policy for vehicle purchases.
Key points of the clarification are as follows:
- Existing Concessions for Small Cars:Â Vehicles measuring less than 4000 mm with petrol engines (under 1200cc) or diesel engines (under 1500cc) are already covered under specific entries (534 and 535) of Schedule II of Notification No. 09/2025-C.T.R. dated September 17, 2025.
- Vehicles for Orthopaedically Disabled:Â Vehicles specifically listed for orthopaedically disabled persons are detailed separately at S. No. 536 of Schedule II of the same Notification.
- Uniform GST Rate:Â The Ministry of Finance has clarified that the applicable GST rate for such small cars, regardless of whether purchased by the general public or orthopaedically disabled persons, is a uniform 18%.
Consequently, the same 18% GST rate will now apply to all categories of cars mentioned above, including those purchased by orthopaedically disabled individuals. In light of this, the Ministry of Heavy Industries has ceased issuing GST concession Certificates for Orthopaedically Disabled Persons under the GST Exemption Certificate Scheme (GECS).
This move aims to standardize GST application across vehicle purchases, ensuring uniformity in tax collection for specific car categories.
The Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/10/Ministry-of-Heavy-Industries-has-issued-Notice-on-October-08-2025.pdf
