On GST rate for specified items for Physically Challenged Persons
Some questions are raised about GST
rates fixed for specific devices for physically challenged persons. This matter
is explained here in below.
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)
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.
Most of the inputs and
raw materials for manufacture of these assistive devices/equipments attract 18%
GST. The concessional 5% GST rate on these devices/equipments would enable
their domestic manufacturers to avail Input Tax Credit of GST paid on their
inputs and raw materials. 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%
GST rate on these devices/equipments would enable their domestic manufacturers
to claim refund of any accumulated Input Tax Credit. That being so, the 5%
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/equipments are exempted from GST, then while imports of such
devices/equipments would be zero rated, domestically manufactured such
devices/equipments will continue to bear the burden of input taxes, increasing
their cost and resulting in negative protection for the domestic value
addition.
In fact, the 5%
concessional GST rate on such devices/equipments will result in a win-win
situation for both the users of such devices, 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.
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