SC Questions Centre on Ending GST Relief for Disabled Car Buyers after Plea by Blind Petitioner [Read Order]
The Apex Court seeks Centre's response within four weeks on a challenge to policy changes that ended GST concession on car purchases for persons with disabilities
The Supreme Court on December 1, 2025 issued notice to the Union of India after a blind petitioner challenged the withdrawal of GST relief on car purchases for persons with disabilities.
Hearing W.P.(C) No. 1140/2025, the Bench of Justice Vikram Nath and JusticeSandeep Mehta sought the Centre’s response within four weeks, with the plea alleging that recent policy changes have effectively ended the long-standing GST concession for disabled car buyers.
The petition, filed through Advocate Sajal Jain along with a team of counsels, asserts that a series of notifications, clarifications and administrative actions from 2021 to 2025 have “in effect extinguished” the concessional GST scheme for PwD, contrary to the protections guaranteed under the Rights of Persons with Disabilities Act, 2016.
The petitioner, a 100% visually impaired individual, stated that he applied in December 2024 for a GST concession certificate to purchase a car in Pune, but his online application was rejected on 1 January 2025 on the ground that the benefit was restricted only to persons with permanent orthopaedic disabilities.
The plea notes that concessional tax treatment for vehicles for persons with disabilities existed since 1999, expanded in 2007, and continued under GST through a reduced 18% rate for PwD. However, following a Finance Ministry clarification on 29.09.2025 and a Heavy Industries notification on 8.10.2025, a uniform 18% GST now applies to small cars for all buyers, prompting the Ministry to stop issuing GST concession certificates.
The petition argues that the recent policy shift dismantles long-standing mobility support for persons with disabilities and reflects inconsistent positions taken by the Centre before various High Courts, resulting in unequal treatment. Citing Section 41 of the Rights of Persons with Disabilities Act, 2016 (RPwD Act), she contended that withdrawing the concession without any alternative measures is arbitrary and discriminatory, infringing the rights to equality, dignity and mobility.
The petition notes that although a committee of the Ministry of Social Justice & Empowerment initially supported extending the GST concession to all persons with benchmark disabilities, the Ministry soon reversed its position and passed the issue to the Finance Ministry, creating policy uncertainty.
This administrative flip-flop, the petitioner argued, shows lack of application of mind, undermines obligations under the RPwD Act, and has left a legal vacuum with no mechanism to ensure mobility support for disabled persons.
After hearing the petitioner, the Supreme Court issued notice to the Union of India, returnable in four weeks.
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