GST Exemption Certificate Scheme (MHI GECS)

What is the GST Exemption Certificate Scheme?

The GST Exemption Certificate Scheme (MHI GECS) is administered by the Ministry of Heavy Industries, Government of India. It issues a certificate that allows an eligible person with a disability to purchase a motor car at a concessional rate of Goods and Services Tax (GST), rather than the standard 28% GST plus compensation cess that ordinarily applies to passenger cars.

The concession itself flows from a Ministry of Finance tax notification: serial number 400 of Notification No. 1/2017-Integrated Tax (Rate) / Central Tax (Rate) dated 28 June 2017, which prescribes a lower GST rate on vehicles for persons with orthopedic physical disability. The role of the Ministry of Heavy Industries is to verify eligibility and issue the certificate that a buyer produces to the car dealer to actually claim the concessional rate. According to the MHI GECS portal, more than 11,000 certificates (11,253 recorded at the time of checking) have been issued.

The scheme matters because a car is often not a luxury but a mobility necessity for a person with a locomotor disability, and the tax on a passenger vehicle can run to a substantial share of the on-road price. Removing the compensation cess and applying a concessional GST rate reduces that cost.

Who is eligible for the GST exemption on a car?

You can apply if:

• You are a person with an orthopedic/locomotor physical disability, as specified under the GST rate notification and the eligibility criteria hosted on the MHI GECS portal.
• You hold a valid disability certificate issued by the competent medical authority, and a UDID card where one has been issued.
• You are purchasing a motor car for your own use and have not availed the concession on another vehicle within the restricted period.

You cannot apply / are not eligible if:

• You do not hold a qualifying disability certificate from the competent medical authority.
• You are seeking the concession on a vehicle category or use not covered by the GST notification's eligibility conditions.
• You have already availed the concession within the applicable lock-in window, or intend to resell the vehicle before the lock-in period ends.

Because the precise disability percentage, the vehicle specifications (engine capacity and dimensions) and the resale lock-in period are set out in the GST notification and the portal's current guidelines, applicants should confirm the exact thresholds on dhigecs.heavyindustries.gov.in before applying. This guide does not reproduce a specific percentage or engine-capacity figure where it could not be confirmed on the official source.

What documents are required?

How to apply for the GST exemption certificate

1. Open the MHI GECS portal at dhigecs.heavyindustries.gov.in and register as a new applicant using your Aadhaar and contact details.
2. Fill in the application with your personal details, disability details and the details of the car you intend to buy (make, model, dealer, quotation).
3. Upload the documents — disability certificate/UDID, Aadhaar, medical certificate and the dealer's proforma invoice.
4. Submit the application and note the acknowledgement/reference number.
5. Track the status on the portal; the Ministry verifies the application and issues the GST exemption certificate electronically if you are eligible.
6. Present the certificate to the car dealer, who applies the concessional GST rate on the invoice for your vehicle.

How the concession works at the dealer

The certificate does not put money in your bank account. Instead, the dealer bills your car at the concessional GST rate authorised by the certificate, lowering the tax component of the on-road price. Keep the certificate, the invoice and your disability documents together, because the vehicle is subject to a resale lock-in. It cannot be transferred for a specified period after purchase, and you sign a declaration accepting that condition.

Help and where to get details

• Portal: dhigecs.heavyindustries.gov.in (Ministry of Heavy Industries)
• Ministry website: heavyindustries.gov.in
• Queries and grievances are handled through the MHI GECS portal; a dedicated public helpline number is not published, so use the portal's contact/help facility.

Because the GST concession is governed by a tax notification that can be amended, and because the eligibility thresholds and vehicle norms are defined on the portal, always verify the current concessional rate, the qualifying disability criteria and the resale lock-in period on the official MHI GECS portal before committing to a purchase.