GST Exemption Certificate Scheme
The GST Exemption Certificate Scheme lets orthopedically disabled persons with 40% or more permanent disability buy a car at a significantly reduced GST rate. Instead of paying 28% GST plus cess (which can be 15–22% extra), eligible buyers pay only 18% GST with zero cess. Apply for the exemption certificate through the Department of Heavy Industries; the certificate is issued within one month and remains valid for 6 months.
About This Scheme
The GST Exemption Certificate Scheme lets orthopedically disabled persons with 40% or more permanent disability buy a car at a significantly reduced GST rate. Instead of paying 28% GST plus cess (which can be 15–22% extra), eligible buyers pay only 18% GST with zero cess. Apply for the exemption certificate through the Department of Heavy Industries; the certificate is issued within one month and remains valid for 6 months.
Full official description
The "GST Exemption Certificate Scheme" has been introduced by the Department of Heavy Industries, Ministry of Heavy Industries for issuing certificates to Persons with Disabilities (PwDs) having a disability percentage equal to or greater than 40%. The scheme provides GSC Concession to orthopedically disabled persons on purchase of a car.
Benefits
- Pay 18% GST instead of 28% GST on the purchase of a qualifying car — saving up to 10% in taxes
- Zero cess applicable (normally 15–22% cess applies on top of GST)
- GST Exemption Certificate issued within one month of a complete application
- Certificate is valid for 6 months from the date of issuance
Who Can Apply (Eligibility)
- Must be an orthopedically physically handicapped person with a permanent disability of 40% or above (certified)
- Can apply regardless of whether the person drives the vehicle themselves or not
- Eligible cars: petrol/CNG/LPG cars with engine ≤ 1200 cc and length ≤ 4 metres
- Eligible diesel cars: engine capacity ≤ 1500 cc and length ≤ 4 metres
- Certificate is valid for 6 months from date of issue and can be used for one car purchase
How to Apply
- Interested and eligible applicants may send their applications in the prescribed format along with all required documents to the following address: The Under Secretary (AEI Section), Department of Heavy Industry, Udyog Bhavan, Room No 428, New Delhi 110011, Tel: 011-23061490
- The applicant would inform DHI about the purchase of the vehicle and the Registration number of the vehicle to the Department of Heavy Industry within a period of 30 days from the date of registration of the vehicle.
Step 1: Home Page
Visit the official website at https://dhigecs.heavyindustry.gov.in/ using any web browser or device.
Step 2: Login and Registration
If you are not registered, click the "REGISTER" button on the home page. Follow the registration process, which includes providing your full name, valid email ID, mobile number, and Aadhar number. An OTP will be sent to your registered mobile number for verification. You will also need to specify if you have a UDID number. If you do, provide the UDID number and validate it.
Step 3: Create Password
Create a password that meets the specified criteria (at least one lowercase letter, one uppercase letter, one number, one special character, and a minimum length of 8 characters). Confirm your password and enter the captcha code. Agree to the terms and conditions, and click "REGISTER."
Step 4: Activate Your Account
Check your registered email for a 4-digit OTP and click the provided activation link. Enter the OTP to activate your account.
Step 5: User Dashboard
After successful registration and activation, log in to the site using your email ID and the password you created. You'll be directed to the User Dashboard, where you can fill in your information. Save your filled information by clicking the "Draft" button and proceed to the next steps.
Step 6: Application Submission
Complete all mandatory fields marked with an asterisk (*) in the User Dashboard. Click "Next" to proceed and continue to fill in additional mandatory fields on the subsequent page (SCR-11). Once all information is filled, click "Final Submit."
Step 7: Check Application Status
Visit the Application Status page (SCR-12) to track the progress of your GST Exemption Certificate application. When your status shows "Approved," you can click "Download Certificate" to access your certificate.
Step 8: Update Vehicle Details
After purchasing a vehicle, it's mandatory to update your vehicle details. Click on "Update Vehicle Details" as displayed in SCR-14. Provide your vehicle number and the date of purchase.
Step 9: Request Form for OEM/Company
If the OEM/Company or model of your vehicle is not listed, you can request to add new entries. Click "Add New OEM/Company Request" and provide the relevant information as shown in SCR-15.
Frequently Asked Questions
What is the process for updating vehicle details after purchase?
After purchasing a vehicle, applicants can update their vehicle details on the portal by providing the vehicle number and date of purchase.
Is the scheme available for both new and used vehicles?
The guidelines specify the criteria for the eligible vehicles but do not distinguish between new or used cars.
Can the online application be saved as a draft and completed later?
Yes, the online application can be saved as a draft in the User Dashboard and completed at a later time.
What happens if an applicant misses the three-month window for purchasing the vehicle?
Missing the three-month window for purchasing the vehicle means the applicant won't be able to avail the concession, and they may need to reapply.
Can a person apply for this scheme if they don't drive the vehicle themselves?
Yes, the scheme is open to both individuals who drive the vehicle themselves and those who don't.
How is the 10% GST concession calculated for vehicle purchases?
The 10% GST concession is calculated as a reduction of the standard GST rate, which is 28%, to 18% for eligible applicants.
What should applicants do if they face technical issues during the online application process?
If technical issues occur during the online application, it's recommended to contact the provided support or helpdesk for assistance.
Is there any specific format or template for the self-declaration statement, or can applicants draft it themselves?
It's advisable to use the prescribed format for the self-declaration statement to ensure it meets the scheme's requirements.
What is the significance of the OTP in the registration process?
The OTP (One-Time Password) is used for verification and ensures that the applicant's contact information is valid.
What is the process if an applicant's disability certificate is from a district government?
If the disability certificate is from a district government, it should bear the proper signature and seal of the issuing authority, and the name and registration number should be mentioned.
How long does it usually take for the certificate to be issued after submitting an application?
The certificate is typically issued within a month from the date of receiving a complete application.
Can you provide more details about the required specifications for creating a password during online registration?
The password must include at least one lowercase letter, one uppercase letter, one number, one special character, and be a minimum of 8 characters in length.
How is the engine capacity of a vehicle determined for this scheme?
Engine capacity is based on the type of fuel (petrol, LPG, CNG, or diesel) and must meet the specified limits to qualify for the concession.
What are the consequences if someone disposes of the vehicle within five years after availing the GST concession?
If the vehicle is disposed of within five years, the applicant may be subject to penalties or other legal consequences.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Aadhar Card
- PAN Card
- Unique Disability ID card (UDID) (issued by the Ministry of Social Justice and Empowerment, Govt. of India) or Disability certificate (issued by Central Govt./State Govt./District Govt. bearing the proper signature and seal of the issuing authority wherein their name and registration no. should be mentioned)
- Income Tax Return filed for the last three years.
- Self-Declaration stating that he has not availed this concession in the last five years and he 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 placed in Annexure C.
- Details of the Vehicle Model they intend to purchase along with the name of the dealer from whom the vehicle will be purchased and the name of RTO, where the vehicle will be registered.