Delhi HC questions Centre Over Withdrawal of GST Concession on Cars for Differently-Abled, Calls Move ‘Positive Discrimination’
The Delhi High Court questioned the Centre over withdrawing the GST concession on cars for differently-abled persons, calling the move “positive discrimination.”
In a recent hearing, the Delhi High Court questioned the Central Government’s decision to withdraw the Goods and Services Tax (GST) concession on the purchase of cars for differently-abled persons, observing that the move amounted to “positive discrimination.”
According to The Hindustan Times, the petition was filed by the All India Confederation of the Blind (AICB), represented by advocate Rahul Bajaj, challenging a notification issued by the Union Ministry of Heavy Industries on October 8, 2025.
The notification reduced the GST rate on all vehicles from 28% to 18% uniformly, without retaining the earlier concessional rate that applied specifically to persons with locomotor disabilities.
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The petitioner’s counsel argued that under the earlier regime, persons with disabilities were entitled to a concessional GST rate of 18%, while the general rate for others was 28%. By reducing the overall rate to 18% for all, the government had effectively taken away the special benefit that previously applied to differently-abled individuals.
They further argued that this decision violated the provisions of the Rights of Persons with Disabilities Act (RPwD Act) and the constitutional principle of equality.
The Division Bench comprising Chief Justice D.K. Upadhyay and Justice Tushar Rao Gedela observed that the government’s decision lacked a clear rationale. The court questioned the Centre’s counsel, asking,
“What have you done? What can be the plausible basis for this? There has to be a rationale for GST. 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.”
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The court further pointed out that the government had failed to make any specific provision for the vulnerable category. It explained that the purpose of such concessions was to ensure inclusivity and that the withdrawal of benefits amounted to discrimination against persons with disabilities.
The court observed that the policy change ignored the principle of providing reasonable support to those who need it the most.
The court directed the Centre’s counsel to obtain instructions and clarify why a reduced GST rate could not be specifically provided for differently-abled persons. The court also directed the government to examine whether a corresponding reduction in the GST rate for orthopedically and visually disabled individuals could be implemented.
The matter has been listed for further hearing on December 17, 2025, with the government expected to submit its explanation regarding the rationale for the policy change.
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