Hundreds of disability rights organisations and individuals have disputed the Finance Ministry’s claim in a July 4 statement that 5 per cent GST rates for items, such as wheelchairs, Braille machines, are “concessional” and a “win-win” for all.

“This is both incorrect and misleading. Pre-GST, barring cars for ‘physically handicapped’, all the disability aids and appliances did not attract any levy,” said a statement released on Monday, criticising the government’s priorities that impose 5 per cent GST on items essential for persons with disabilities while many items for puja, as also kumkum, bindi, bangles etc are exempt.

The organisations said in its clarification of July 4, the GST Council had taken the plea that the compelling reason for imposing the “concessional rate” of 5 per cent was for the domestic manufacturer to claim input tax credit for raw material used in the manufacture of these products.

“It needs to be clarified that items like Braille printer, refreshable Braille display and Braille note-taker, talking watches and clocks, audio labelling devices, DAISY players, talking thermometer, talking weighing machine, talking scales, etc. are entirely imported items and did not attract any taxes earlier,” said the statement.

“As for taxes on domestically manufactured items, raw materials like aluminium extrusions, square tubes and round tubes of aluminium used in the manufacture of artificial limbs; or many rehabilitation aids were exempt from the tax regime earlier,” the statement read.

Pained by the government’s delayed response to widespread protests on the issue, the organisations also accused the government’s July 4 clarification, after Congress Vice-President Rahul Gandhi’s tweet, of “intentionally” missing mention of a slab of 0.25 per cent for items like unpolished stones.

“Unpolished diamonds attract a GST of a mere 0.25 per cent and polished diamonds and gold only 3 per cent. Diapers used by certain categories of the disabled and the elderly are also taxed at 12 per cent,” said the release.

‘Take concrete steps’

“If the intent of the government is to protect the domestic industry, as it seeks to claim, the spiel must be accompanied by concrete steps to help the Indian manufacturers, build capacity by way of a technology incubator and extend existing indigenous manufacturers’ scattered production centres into a nation-wide network of assistive device distribution, customisation and servicing,” they said.

Also, if input tax credit cannot be applied for nil duty goods, the disability rights organisations demanded that these items be given full input tax credit, even if they pay 0 per cent GST.

“All this requires is a net transfer from the government to offset the calculated input tax amount”, they said adding that ideally, as a sector where the end consumer should not be additionally burdened, the tax rates of these products must be restored to the earlier exempt status without forgoing benefits of tax already paid across the value chain.

comment COMMENT NOW