DHI revises the guidelines for issue of GST concession on purchase of vehicles by disabled person

Oct 25, 2019 | by Avantis RegTech Legal Research Team

The Ministry of Heavy Industries & Public Enterprises, on October 24, 2019, has revised the guidelines for availing the concessional rate of GST, for purchase of vehicle by the persons with orthopaedic disability, of equal to or greater than 40% disability irrespective of the fact that the applicant drives the vehicle himself or otherwise. The Department of Heavy Industry (DHI) had already specified guidelines for availing the concessional rate of GST on purchase of vehicle by disabled person vide Notification No. 14/2019-Integrated Tax Rate dated September 30, 2019, issued by the Ministry of Finance.

Thus, the GST concession shall be availed for following motor vehicles of length not exceeding 4000mm only, namely: -

• Petrol, Liquified petroleum gases (LPG) or compressed natural gas (CNG) driven vehicles of engine capacity not exceeding 1200cc; and 

• Diesel driven vehicles of engine capacity not exceeding 1500 cc; 

• For availing the concessional duty, an eligible applicant with orthopaedic physical Disability (=>40% disability) – 

o shall make an application to Department of Heavy Industry (DHI) in the format prescribed,

o submit a medical certificate duly signed and countersigned as prescribed and the copy of Income Tax Return filed for the last three years, and

o shall submit a Self-declaration stating that he has not availed this concession in the last five years and will not dispose of the vehicle after availing the GST concession for a period of 5 years from the date of purchase in the prescribed format.

The DHI shall issue the certificate of concession which shall remain valid for period of three months from the date of issue of certificate and the applicant will be required to purchase the vehicle within these three months and should inform the DHI about the purchase within thirty days of registration. All vehicles sold upon the concessional certificate by DHI will be registered as ‘adapted vehicle’ as per new Motor Vehicle Act, 2019.

The application may be sent to the Under Secretary (AEI Section), Department of Heavy Industry Udyog Bhavan, Room no. 428, New Delhi 110011 (Tel: 011-23061490).


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