In a strong appeal to the Union Finance Minister Nirmala Sitharaman and the GST Council, disability rights activist Nipun Malhotra, Founder of the Nipman Foundation and Director of Policy & Programs at The Quantum Hub (TQH), has called for urgent reforms in the Goods and Services Tax (GST) framework to exempt disability aids and assistive technologies from taxation.
In his letter to the Finance Minister ahead of the GST Council meeting scheduled on 3–4 September 2025, Malhotra highlighted the persistent 5% GST levy on disability aids, which he said effectively acts as a “tax on mobility, independence, and inclusion” for Persons with Disabilities (PwDs).
A Barrier to Accessibility
Malhotra, who himself uses a wheelchair due to a congenital condition called Arthrogryposis, stressed that while assistive devices are crucial in enabling dignity, independence, and participation in society, the GST burden continues to act as a barrier.
He reminded the government that he had earlier filed a writ petition before the Supreme Court (W.P. (Civil) No. 725/2017) challenging the levy. While the case remains pending, he urged the Council to act decisively in the upcoming meeting.
Scale of the Issue
Census 2011 had recorded 26.8 million PwDs in India, but WHO estimates suggest that nearly 16% of the global population lives with some form of disability. India’s demand for assistive technologies is estimated to reach 250 million PwDs, with 70% of the need unmet.
Malhotra criticized the GST Council’s stance that a 5% levy is “beneficial” since manufacturers can claim input tax credit (ITC). “In reality, this benefit accrues to producers, not end-users, forcing PwDs to bear an unjust additional cost,” he argued.
International Best Practices
Drawing comparisons with countries like Australia and Canada, which exempt medical aids from tax by categorizing them as zero-rated, Malhotra said India should adopt a similar approach. “Clear classification codes will ensure no misuse while ensuring PwDs get the benefits needed for daily survival,” he added.
Constitutional and Social Imperatives
Citing constitutional guarantees of equality, non-discrimination, and dignity under Articles 14, 15, 19, and 21, Malhotra argued that continuing to tax disability aids undermines fundamental rights. He pointed to past Supreme Court rulings, including Jindal Stainless Steel v. State of Haryana, that held taxation cannot infringe constitutional rights.
He further stressed that disability is not just a medical limitation but a societal question of inclusion. “While people without disabilities are never taxed to walk, see, or hear, PwDs are effectively taxed for the very same rights,” he wrote.
Government’s Inclusive Vision
Malhotra welcomed Prime Minister Narendra Modi’s Accessible India Campaign and his Independence Day address this year, where he emphasized reforms to empower every Indian. He also referred to the Parliamentary Standing Committee report chaired by MP Rama Devi, which noted that disability aids are necessities enabling independence, literacy, and dignified employment.
Importantly, Malhotra pointed to the recent GST Group of Ministers’ recommendation to exempt health and life insurance premiums from GST as a step in the right direction. “A similar stance must be taken for disability aids and services so that PwDs can live a life of dignity and become economic contributors to the country,” he said.
The Road Ahead
With the upcoming GST Council meeting providing an opportunity to revisit the taxation of essential goods and services, Malhotra urged policymakers to act decisively. “Removing GST on disability aids is not a concession but an investment in justice, productivity, and nation-building,” he concluded.
