Devices for disabled taxed at concessional 5% rate: Govt

NEW DELHI: The Government today refuted Congress leader Rahul Gandhi’s charge of GST rates being “insensitive” to the disabled, saying a concessional 5 per cent levy will bring down prices of assistive devices for physically-challenged as also promote domestic manufacturing.

From Braille writers and Braille paper to wheelchairs, talking books, assistive listening devices and implants for the severely physically-challenged, as many as 22 items for them will attract a Goods and Services Tax (GST) of 5 per cent.

The rate was kept at 5 per cent because the inputs and raw material like steel used for manufacturing these assistive devices or equipment attract 18 per cent GST.

Since the final consumer tax is lower than the tax on inputs, a domestic manufacturer can claim refund, Revenue Secretary Hasmukh Adhia said adding if the GST tax rate was zero it would have meant that domestically manufactured equipment would have been uncompetitive as compared to imports. (AGENCIES)