Gst on vehicle purchase by handicap person is exempted

As of October 2025, the GST Exemption Certificate Scheme for persons with orthopaedic disabilities has been discontinued.

Previously, eligible individuals could apply for a concession that reduced the GST rate on certain small cars from 28% to 18%. However, following a rationalisation of GST rates by the Ministry of Finance in September 2025, the standard GST rate for these specific vehicles (cars not exceeding 4000 mm in length with petrol engines $\le$ 1200 cc or diesel engines $\le$ 1500 cc) was adjusted to 18% for everyone.

Key Points:

• Uniform GST Rate: Because the GST rate for these small vehicles is now uniformly 18% for all buyers, there is no longer a specific "concession" to be claimed.

• Discontinuation of Certificates: As a result, the Ministry of Heavy Industries no longer issues the GST Concession Certificate for orthopedically disabled persons.

• Current Status: You do not need to apply for or produce a concession certificate to purchase these vehicles at the 18% GST rate, as it is the standard rate applicable to all purchasers of these vehicle categories.

If you are planning to purchase a vehicle, you should verify the current tax structure with your car dealer, as the 18% rate now applies universally to the small vehicle categories previously covered by the scheme.

GST Concession Clarification

This video provides an overview of the GST concessions that were historically available for persons with disabilities, which is relevant for understanding why the recent changes in tax policy have effectively standardized the rates.

GST concession for PwDs