Diabled GST

“The GST on aids and appliances for persons with disabilities is a reminder of Nangeli’s act of
severing her breasts in protest against the Mula Karam or breast tax levied on women from
lower castes in Kerala in the early 19th century. This reference is ingrained in the minds of
every Malayali for its sheer unjustness — taxing a body part.”
The GST on aids and appliances for people with disabilities has been compared to the infamous
breast tax of Kerala by The Indian Express. They are trying to put forward the unfairness of
taxing prosthetic arms and legs at 5% (which are kind of necessary for PWD) while kajal,
kumkum, bindis and bangles are not taxed at all.
GST Rates:
Disability Equipment with Nil GST Rate
According to the final GST rates, Braille Books will be taxed at 0% i.e. they are exempted from
any tax.
Disability Equipment with 5% GST Rate
Assistive devices and rehabilitation aids for physically challenged persons, listed below, have
been kept at the concessional 5% GST rate:
1. Braille writers and
braille writing
instruments;
2. Handwriting equipment
like Braille Frames,
Slates, Writing Guides,
Script Writing Guides,
Styli, Braille Erasers
3. Canes, Electronic aids
like the Sonic Guide;
4. Optical, Environmental
Sensors;
5. Arithmetic aids like the
Taylor Frame
(arithmetic and algebra
types), Cubarythm,
Speaking or Braille
calculator;
6. Geometrical aids like
Combined Graph and
Mathematical
Demonstration Board,
Braille Protractors,
Scales, Compasses and
Spar Wheels;
7. Electronic measuring
equipment such as
Calipers, Micrometers,
Comparators, Gauges,
Gauge Block Levels,
Rules, Rulers and
Yardsticks
8. Drafting, Drawing Aids,
Tactile Displays;
9. Specially adapted Clocks
and Watches;
10. Orthopedic appliances
falling under heading No.90.21 of the First Schedule;
11. Wheel Chairs falling under heading No.87.13 of the First Schedule;
12. Artificial electronic larynx and spares thereof;
13. Artificial electronic ear (Cochlear implant);
14. Talking books (in the form of cassettes, discs or other sound reproductions) and large-
print books, braille embossers, talking calculators, talking thermometers;
 15. Equipment for the mechanical or the computerized production of braille and recorded
material such as braille computer terminals and displays, electronic braille, transfer and
pressing machines and stereo typing machines;
16. Braille Paper;
17. All tangible appliances including articles, instruments, apparatus, specially designed for
use by the blind;
18. Aids for improving mobility of the blind such as electronic orientation and obstacle
detecting appliance and white canes;
19. Technical aids for education, rehabilitation, vocational training and employment of the
blind such as Braille typewriters, braille watches, teaching and learning aids, games and
other instruments and vocational aids specifically adapted for use of the blind;
20. Assistive listening devices, audiometers;
21. External catheters, special jelly cushions to prevent bed sores, stair lift, urine collection
bags;
22. Instruments and implants for severely physically handicapped patients and joints
replacement and spinal instruments and implants including bone cement.

Impact on Consumers:

One cannot ignore the fact that the life of people with handicaps is riddled with difficulties. The
daily tasks like walking that are seemingly natural to a healthy person are demanding for
another who has to use crutches. The aids and appliances have a singular aim – to empower
differently abled people so they can try to lead normal lives. Wheelchairs, hearing aids, Braille
writers and papers, talking books and implants are needs of Person with Disabilities, not wants.
Why most equipment is not exempt –
Exempting these aids under GST would not be a wise decision for multiple reasons. Firstly, 5% is
the most beneficial tax rate under GST. Gold and diamond attract a levy of 3% but with the 18%
making charges and custom duty at 10%, the effective rate comes to 15.67% as compared to
the earlier effective rate of 12.43%.
Secondly, most of the raw materials and services used for making these aids are taxed at 18%
and some sophisticated electronic inputs have been put in the 28% tax bracket. The suppliers
can therefore claim an input credit for the tax paid on input. Additionally, since the tax rate on
input is higher, the entire 5% levy on the aids will be offset against the input taxes. This will lead
to zero effective tax on the items making them cheaper. In fact, the suppliers will have surplus
credit available in his/her account as the tax on most inputs is significantly higher at 18%. The
suppliers will be able to claim a cash refund for the credit remaining with them. If the
appliances are exempt from tax, claiming tax credit on input would not be possible, thereby
leading to an increase in the cost of these products.
An official statement also explained that if the equipment for the disabled is exempted from
GST, the imports would continue to be at a zero percent duty. As a consequence, domestically
manufactured devices and equipment would have to bear the burden of input taxes. This would
mean an increase in the cost which would make the domestic products uncompetitive to their
foreign counterparts.
This move aims to give a boost to the domestic manufacturing of the devices and there would,
hopefully, be a decline in the prices for such products. However there still exists a debate on
the matter as Braille papers are still under the 5% tax slab. Charging tax on Braille papers would
automatically make the books costlier