GST on assistive devices: Why are people with disabilities being taxed for their survival?

The debate over taxation on disability aids remains in the fore, with government yet to exempt assistive devices and rehabilitation services from the ambit of the Goods and Services Tax (GST).

Advocates and parliamentary panels have argued that a tax on such essential equipment effectively penalises people with disabilities for seeking mobility, communication and independence.

Despite recent GST changes being made to seem as ultimate and long due, wheelchairs, hearing aids, crutches, Braille paper, and screen readers continue to attract GST at a ‘concessional’ rate of 5 per cent. In certain cases, rehabilitation and therapeutic services have been subjected to rates as high as 18 per cent.

While the GST Council has maintained that the lower 5 per cent slab allows manufacturers to benefit from input tax credit on raw materials, critics point out that the benefit rarely reaches the consumer. With raw materials often taxed at 18 per cent, the cost of production is passed on to end-users, leaving families already under financial strain to shoulder an additional burden as argued in a recent article on Scroll.

Disability rights campaigners insist that this system is inequitable. A recent report by the Parliamentary Standing Committee on Social Justice and Empowerment, chaired by MP Rama Devi, stated unequivocally that disability aids are not optional goods but fundamental necessities that enable access to education, employment and daily life with dignity.

The report recommended that these items be either zero-rated or fully exempted from GST, a position strongly endorsed by welfare organisations.

The fiscal case for exemption has also been highlighted. The assistive devices market represents only a small fraction of GST collections, and experts contend that exempting these goods would not destabilise revenue. On the contrary, it would ease household expenses, expand access to technology and signal that persons with disabilities are recognised as equal citizens.

The constitutional dimension adds further weight to the demand. Legal experts argue that taxing essential aids undermines rights guaranteed under Articles 14, 15, 19 and 21 of the Constitution, which safeguard equality, non-discrimination and dignity. The Supreme Court has on several occasions held that taxation must not infringe fundamental rights, and disability advocates say the current system runs counter to this principle.

Taxing aids and rehabilitation services, campaigners say, compounds the multiple layers of exclusion that women with disabilities already face in education, healthcare and employment.

International experience provides further grounds for reform. Countries such as Australia and Canada have exempted disability aids entirely, acknowledging that taxing them is both unjust and counterproductive. Advocates have urged India to follow this model by classifying assistive devices under distinct HSN (Harmonised System of Nomenclature) codes, which would allow them to be zero-rated throughout the supply chain.

For now, the GST Council has made no move to scrap the tax, but calls for change are growing louder. With the next Council meeting approaching, activists and parliamentary committees alike are pressing for urgent action. They argue that while tax reform is often framed in technical terms, in this case the stakes are moral.

A society that seeks inclusive growth, they contend, cannot justify a system where people without disabilities move freely while people with disabilities pay extra simply to do the same.