The Delhi High Court on Wednesday criticised the central government for withdrawing Goods and Services Tax (GST) concessions on the purchase of cars for differently-abled individuals, observing that the move amounted to “positive discrimination.”
A bench of chief justice DK Upadhyay and Justice Tushar Rao Gedela thus directed the Centre’s counsel to seek instructions and clarify the rationale behind the decision.
The court was dealing with a petition filed by the All India Confederation of the Blind (AICB)’s notification challenging the Union Ministry of Heavy Industry’s October 8 notification of uniformly reducing GST on vehicles from 28% to 18%, without making any provision for persons with locomotor disability.
AICB, represented by advocate, argued that earlier, individuals with locomotor disabilities were entitled to a concessional GST rate of 18% on vehicles, while the standard rate for others was 28%. However, under the new notification, the GST rate has been uniformly reduced to 18% for all, effectively eliminating the special concession previously available to persons with disabilities.
Such a move, Bajaj said, was violative of the rights of persons with locomotor disability and the provisions of the Right of Persons with Disabilities Act (RPwD Act).
Considering the contentions, the court said, “What have you done? What can be the plausible basis for this? There has to be a rationale for GST. What is this you have done? You have taken away the benefit already given to them. You brought it down from 28 to 18 and now it is 18 for all. Please give rationale, we cannot understand.”
It added, “What have you done for the vulnerable? The choice is that you better do it. It is a kind of positive discrimination. Why could you not reduce the GST for them as well?”
Accordingly, the court directed the Centre’s counsel to obtain appropriate instructions on why a reduced GST rate cannot be specifically provided for the differently-abled category and fixed December 17 as the next date of hearing.
“We direct the counsel representing the respondents to seek instruction as to why a corresponding decrease in the rate of GST to be levied from persons who are orthopedically and visually disabled cannot be brought into effect,” the court said in its order.
