GST Exemption Certificate Scheme
10% GST concession on car purchase · PwD with 40%+ disability · central govt 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
💡 Why Startups Should Care
Not directly startup-relevant, but if your founding team or a key employee has an orthopedic disability, this scheme cuts 10% GST (saving ₹2–4 lakh on a typical car) — worth checking before any vehicle purchase.
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
- Register on the official portal at dhigecs.heavyindustries.gov.in — provide your name, email, mobile number, and Aadhaar.
- Activate your account via the OTP sent to your email.
- Log in to the User Dashboard and fill in all mandatory personal and disability details.
- Complete all required fields and click Final Submit.
- Check application status on the Application Status page — download your certificate when status shows Approved.
- After buying the vehicle, update your vehicle registration number on the portal within 30 days of registration.
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
- Aadhaar card
- PAN card
- UDID card or disability certificate (issued by Central/State/District govt with 40%+ disability)
- Income Tax Returns for the last 3 years
- Self-declaration form (not availed concession in last 5 years; will not dispose vehicle within 5 years)
- Details of the vehicle model, dealer, and RTO where vehicle will be registered