Finance Ministry issues clarification on GST rate for specified items for the differently-abled

The Ministry published a list of assistive devices and rehabilitation aids for physically challenged persons which have been kept at the concessional 5 per cent GST rate.

These include:

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)  Orthopaedic 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.

The Ministry said that most of the inputs and raw material for manufacture of these assistive devices/equipment attract 18 per cent GST.

However, the concessional 5 per cent GST rate on these devices/equipment will enable their domestic manufacturers to avail Input Tax Credit of GST paid on their inputs and raw material. 

Further, the GST law provides for refund of accumulated Input Tax Credit, in cases, where the GST rate of output supply is lower than the GST rate on inputs used for their manufacture. 

Therefore, 5 per cent GST rate on these devices/equipment will enable their domestic manufacturers to claim refund of any accumulated Input Tax Credit.

Hence, the 5 peer cent concessional GST rate on these devices/equipment would result in reduction of the cost of domestically manufactured goods, as compared to the pre-GST regime.

As against that, if these devices/equipment are exempted from GST, then while imports of such devices/equipment would be zero rated, domestically manufactured such devices/equipment will continue to bear the burden of input taxes, increasing their cost and resulting in negative protection for the domestic value addition, the Ministry said.

According to the Ministry, the 5% concessional GST rate on such devices/equipment will result in a win-win situation for the disabled persons as well as the domestic manufacturers of such goods. It is for this reason that the Council has kept these items in 5% rate slab.