Delhi HC Questions Centre on Withdrawal of GST Concessions for Differently-Abled Vehicle Buyers

The Delhi High Court on Wednesday expressed strong concern over the central government’s decision to withdraw special Goods and Services Tax (GST) concessions for differently-abled individuals purchasing vehicles, terming the move a setback to “positive discrimination.”

Background of the Case

The bench, comprising Chief Justice DK Upadhyay and Justice Tushar Rao Gedela, was hearing a petition filed by the All India Confederation of the Blind (AICB) challenging the Union Ministry of Heavy Industry’s October 8 notification. The notification lowered GST on vehicles from 28% to 18% uniformly, removing the previously existing concessional rate specifically available to persons with locomotor disabilities.

Advocate Rahul Bajaj, representing the AICB, argued that the earlier GST framework provided differently-abled individuals with a special 18% rate, while the standard rate for others was 28%. The recent uniform reduction, Bajaj contended, effectively eliminated this targeted benefit, violating the Right of Persons with Disabilities (RPwD) Act and undermining measures meant to support vulnerable groups.

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HC’s Observations

The court questioned the rationale behind the government’s move, stating:

“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 further highlighted the principle of positive discrimination, asking why a lower GST could not continue for differently-abled individuals:

“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?”

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Next Steps

The court directed the Centre’s counsel to seek instructions and provide a clear justification for not maintaining a differentiated GST rate for persons with orthopaedic and visual disabilities. The next hearing is scheduled for December 17, 2025.

“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 order stated.