Delhi High Court questions Centre over scrapping of GST concessions on car purchases for differently-abled persons

The Delhi High Court on Wednesday sought a response from the Central government on a petition challenging a notification effectively scrapping Goods and Services Tax (GST) concessions on purchase of cars for differently abled persons [All India Confederation of the Blind (AICB) v. Union of India And Ors].

The petition has been filed by All India Confederation of the Blind (AICB) challenging the notification dated October 8, 2025 issued by the Ministry of Heavy Industries.

The Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela took strong exception to the notification and demanded to know the rationale behind the move.

"What have you done? What can be the plausible basis for this?" the Chief Justice questioned the Central government.

Justice Gedela said to the Centre's counsel,

"There has to be a rationale for GST. What is this you have done? 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. What have you done for the vulnerable?"

Advocate Rahul Bajaj was representing the petitioner AICB. He stated that as per the earlier regime, the GST on vehicles was 18 per cent for persons with locomotor disability, and for others, the rate was 28 per cent. However, as per the new notification, the GST rate has been reduced to 18 per cent uniformly, scrapping the special concession for persons with disabilities.

"You confront your officers yourself, or else we will confront them," the Chief Justice said.

Justice Gedela said,

"The choice is that you better do it."

Chief Justice stated that there ought to be a proportional decrease in GST for the differently abled persons also.

"It is a kind of positive discrimination. Why could you not reduce the GST for them as well?"

The Court directed the Centre's counsel to take appropriate instruction as to why GST on vehicles cannot be reduced for the differently abled category.

"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 matter will next be heard on December 17.

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