The “GST Exemption Certificate Scheme” was introduced by the Ministry of Heavy Industries’ Department of Heavy Industries to provide GST exemptions to Persons with Disabilities (PwDs) who have a permanent disability of 40% or more. PwDs can purchase cars under this program at a discounted GST rate and without any cess, making it accessible and cheap for them.
Specifics
- The program is open to those with orthopaedic disabilities who have a disability percentage of 40% or higher.
- GST Exemption: In contrast to 28 percent GST plus relevant cess, qualified candidates may claim up to 10 percent GST exemption and pay 18 percent GST with no cess.
- Only cars with specific engine and size categories are eligible for the scheme.
- Certificate Validity:
- The GST exemption certificate issued by the issuing authority is good for three months after it is issued.
- To take advantage of the discount, the car must be bought during this time frame.
- After an application is received and all necessary paperwork is in order, the certificate will be issued within a month.
Advantages
- Profits include a full GST reduction and no cess on the cars that were bought.
- Facilitates Accessibility: It promotes car ownership among those with disabilities.
- Quick Processing: After an application is completed, certifications are issued within a month.
Qualifications
Disability Requirements
- The candidate has an orthopaedic handicap that is 40% or more permanent.
- Whether or not the applicant operates the vehicle themselves has no bearing on eligibility.
Details of the Vehicle
- Automobiles, both automatic and manual, that are at least 4 meters long.
- Engine capacity ≤ 1200 cc for gasoline, LPG, or CNG.
- Diesel: < 1500 cc engine capacity.
Conditions of Use
- The certificate holder is required to notify the Department of Heavy Industry and register the vehicle within 30 days after purchase.
- For five years following the date of purchase, the car cannot be sold or transferred.
Method of Application
Offline Application
- Form Retrieval: Obtain the required form from the Heavy Industry Department.
- Attach Documents: Gather the required paperwork as listed below.
- Send in the Application: Send the completed application and supporting documentation to the Under Secretary (AEI Section) of the Heavy Industry Department at:
- Address: Udyog Bhavan, Room No. 428, New Delhi, 110011
- Contact: 011-23061490
- After-Purchase Details: Within 30 days of the vehicle being registered, notify the Department of the acquisition and the registration number.
Internet-Based Application
- Additionally, the applicant may apply online or using the UMANG app.
Documents Needed
- Identification Documents: Aadhaar cards are required.
- Tax Information: Last three years’ income tax returns and PAN card.
- Disability Certificate: A central, state, or local government agency may issue a disability certificate, often known as a UDID card.
- Self-Reporting:
- A statement indicating that the applicant hasn’t used this facility in the last five years.
- A statement confirming the car would not be sold for five years from the date of purchase.
- Details of the Vehicle:
- Details on the car to be bought, the dealer, and the planned RTO registration.
- Certificate of Medical Status (if required):
- An orthopaedic physician and a civil surgeon must properly complete and sign Annexure B if the applicant does not have a disability certificate.
Commonly Asked Questions
- How do you update a vehicle’s details after you’ve bought it?
- After the vehicle is registered, the applicant has 30 days to notify the Department of Heavy Industry. The registration number must be provided by the applicant.
- Does the plan apply to both new and used cars?
- No, the plan is solely for buying brand-new cars.
- What happens to an applicant who doesn’t make a purchase within the allotted three months?
- The applicant must reapply for the concession if the car is not bought within three months of the certificate’s issuance date.
- Can someone who doesn’t drive the car themselves still apply?
- Yes, regardless of whether the applicant operates the vehicle or not, the program is applicable.
- If applicants encounter technical difficulties while completing the online application procedure, what should they do?
- The Department of Heavy Industry or the UMANG app support staff can provide application assistance.
- How is the 10% GST reduction calculated?
- Reducing the GST rate from 28% to 18% and any other cess that is not applicable to the vehicle is how the relief is calculated.
- If the car is sold within five years, what are the ramifications?
- The applicant may have to repay the GST discount, among other legal and financial repercussions, if the car is sold or transferred within five years.
Respected sir,
kindly guide for electric car under exemption case. and witch cars are under these scheme at present.
Under the GST Exemption Certificate Scheme for Persons with Disabilities (PwDs), you can buy electric cars with reduced GST (5%) and no cess (tax). T
his makes electric vehicles more affordable for PwDs.
Some states may offer extra benefits like road tax exemptions.