Millions of Indians with disabilities face the agonising question, “Why must we pay a tax for our right to participate in society?” whether they purchase a wheelchair, hearing aid, or braille device— a basic, necessary act. With the latest revision of the Goods and Services Tax (GST), which was hopefully called GST 2.0, a more sensible and taxpayer-friendly system was promised (Bajaj Finance, 2025). It simplified slabs and provided relief on many items. But for the disability community, this “2.0” update feels like the same old software with the same critical bug: the persistent taxation of their freedom.
The Illusion of a “Concession”
The official line is that assistive devices enjoy a “concessional” GST rate of 5% (Central Board of Indirect Taxes and Customs, 2019). Made to sound like a favour, this term is a masterwork of bureaucratic jargon. However, in practice, this 5% is a penalty rather than a concession for families that are already overburdened by the costs of treatment, medical care, and the basic expenses of managing a disability.
It’s a surcharge on dignity. A wheelchair isn’t a luxury car; it’s a person’s legs. A hearing aid isn’t a wireless earbud; it’s a bridge to the world of sound. By taxing these as if they were consumer goods, the system fundamentally misunderstands their purpose (National Herald India, 2024).
Read More: Understanding the Rights of Persons with Mental Illness: A Guide to Dignity and Equality
Ground Zero: Where Policy Meets Life
Let’s step away from the policy papers and into the lives this tax affects.
- Consider Meena, a schoolteacher in Lucknow, who needed a new advanced wheelchair after her old one broke down. The 5% GST added nearly ₹4,000 to the bill. “That’s my entire month’s budget for groceries,” she says. “I had to borrow from a relative. The system seems to be working against you rather than in your favour.”
- Arjun is a young college student who has a vision disability. The cost of his screen-reading software, which is necessary for his studies, was ₹75,000. The GST added another ₹3,750. For a student from a middle-class family, this is a significant extra burden, a tax on his education and future employability.
These aren’t isolated cases. They are the predictable outcome of a policy that views accessibility as a niche market, not a universal right.
Read More: Employment as a Pathway to Self-Identity in People with Disabilities
The Flawed Defence: Input Tax Credit
The most common defence of the tax is the “Input Tax Credit” (ITC) argument. The logic goes: if assistive devices are moved to a 0% slab, domestic manufacturers won’t be able to claim credit for taxes paid on their raw materials (Central Board of Indirect Taxes and Customs, 2019). This, they argue, would make Indian products uncompetitive against imports. It sounds reasonable in a conference room. But on the ground, the theory crumbles.
First, the benefit of this ITC rarely seems to translate into meaningfully lower prices for the end consumer. The supply chain absorbs the savings, and the person buying the wheelchair still pays the full 5% at the point of sale. Second, and more importantly, this argument prioritises the health of an industry over the health and dignity of citizens. We don’t apply this logic to life-saving drugs, which are rightly exempt. Why is the ability to move, communicate, and learn considered less essential?
GST 2.0: A Glaring Omission
This is why GST 2.0 feels like a missed historic opportunity. While it brought cheers for many sectors, it left the disability community behind (ClearTax, 2025). The reforms were a chance to align our tax code with our constitutional values of equality and inclusion. By failing to grant a full exemption, the message sent is painfully clear: the dignity of persons with disabilities is not a priority.
Other nations have grasped this simple truth. Countries like the UK, Australia, and Canada either exempt these devices entirely or have robust rebate systems (Government of Canada, 2024; Inclusive Inc., 2024a, 2024b; National Herald India, 2024). They recognise that removing financial barriers isn’t a subsidy; it’s an investment in a more inclusive and productive society.
The Ripple Effect of a Simple Change
A zero-rating of GST on assistive devices would be a transformative, yet fiscally minor, gesture for the government. The revenue foregone would be a tiny fraction of the GST collection (Scroll.in, 2024). But for millions, it would mean:
- One less loan to take.
- The ability to buy a safer, more durable device.
- A feeling that the state sees them as equal citizens.
This isn’t just about economics; it’s about morality. It’s about what we, as a society, choose to tax and what we choose to champion.
The Path Ahead
The GST Council is not a static entity. It meets, it reviews, it evolves. The campaign for a zero rating is not asking for a complex new framework. It is asking for a simple, decisive correction. The question before the Council members is not one of complex economics, but of simple empathy. If their parent, their child, or they themselves needed a device to navigate the world, would they consider it fair to pay a tax on it? The answer to that question will define the true inclusiveness of GST 2.0. Until then, the tax code remains a barrier to the very inclusion our nation claims to strive for. It’s a barrier we have the power, and the moral obligation, to remove.
References +
Bajaj Finance. (2025, January 6). GST rates in India 2025 – Check List of Latest Goods and Service Tax Rates. https://www.bajajfinserv.in/gst-rates-in-india
Central Board of Indirect Taxes and Customs. (2019). Press release on GST rate for specified items for Physically Challenged Persons. https://cbic-gst.gov.in/pdf/press-release/gst-on phychallenged.pdf
ClearTax. (2025, January 25). New GST Rates in India 2025: List of Goods and Service Tax Rates, Slab and Revision. https://cleartax.in/s/gst-rates
Government of Canada. (2024). Medical and Assistive Devices. Canada Revenue Agency. https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/4-2/medical assistive-devices.html
Inclusive Inc. (2024a). Australian GST Exemption for Health and Medical Care. https://inclusiveinc.org/pages/australia-tax-exemption
Inclusive Inc. (2024b). Canada GST+HST Exemptions for Medical and Assistive Devices. https://inclusiveinc.org/pages/canada-tax-exemption
IndiaFilings. (2019, December 17). Concessional GST Rate for Special Items of Physically Challenged Persons. https://www.indiafilings.com/learn/concessional-gst-rate-for-special-items-of physically-challenged-persons/
National Herald India. (2024, December 15). GST on assistive devices: Why are people with disabilities being taxed for their survival? https://www.nationalheraldindia.com/national/calls-grow-to scrap-gst-on-assistive-devices
Scroll.in. (2017, June 23). Devices that aid India’s disabled people are already hard to come by. GST will make it worse. https://scroll.in/pulse/841224/devices-that-aid-indias-disabled-people-are already-hard-to-come-by-gst-will-make-it-worse
Scroll.in. (2024, December). When walking, seeing and hearing are taxed: The case against GST on disability aids. https://scroll.in/article/1085981/when-walking-seeing-and-hearing-are-taxed the-case-against-gst-on-disability-aids
