Excise Duty Concession to Persons with Disabilities (PWDs)

This concession is a tax‐relief measure run by the Ministry of Finance & the Ministry of Heavy Industries & Public Enterprises on behalf of the Government of India. It was introduced via notification under the Central Excise Act to allow a reduced excise duty rate on passenger motor vehicles purchased by persons with disability. The purpose is to make vehicles more affordable for persons with disabilities by reducing the excise-duty burden. The benefit for you: if you are a person with a disability , you could purchase a specially designed vehicle with lower excise duty.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Reduced excise duty rate: Normally, excise duty on such passenger vehicles could be 16 % or 24 %. Under this concession, the duty is capped at 8% for eligible purchases by PWDs. This reduces the upfront cost of the vehicle, making it more affordable.
Eligible vehicles designed/adapted for PWDs: The vehicle must be suitable for the person with disability either by adapting controls, gear, accelerator/brake modifications, or by being a vehicle that the disabled person can drive. The manufacturer must confirm the vehicle has been specifically designed/fitted with special control devices depending on the disability.
Excise Duty Concession Certificate: To avail the reduced rate, the buyer must apply for this certificate from the Department of Heavy Industry (DHI) / Ministry of Heavy Industries. The certificate confirms that the vehicle is designed for PWD use and thereby eligible for concessional duty.
Conditions of prior availing and disposal: To prevent misuse, rules specify: the applicant has not availed this concession in the past 5 years; after purchase, the vehicle should not be sold/disposed of for at least 5 years. These conditions ensure the concession is targeted to actual needers.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Concessional duty rate	Excise duty reduced to 8% instead of 16%/24%	Example: A PWD buys a specially adapted car which normally attracts 24% excise duty. With this concession, duty is only 8%, reducing cost.
Adaptation or modification support	Vehicle must be adapted/fitted with controls for PWDs	Example: Manufacturer fits hand controls/accelerator for person with limited leg mobility; this adaptation helps qualify.
Certificate based eligibility	Certificate from DHI ensures only eligible vehicles get benefit	Example: Buyer submits manufacturer certificate + medical certificate to DHI and receives concession certificate, then purchases vehicle at lower duty.

Eligibility Criteria

Who Can Apply:

Individuals with benchmark disability (40 percent or more) certified by a competent authority.
Persons with locomotor disabilities requiring adapted vehicles.
PwDs intending to purchase a new motor vehicle for personal use.
Applicants possessing valid driving licences (where applicable).
Individuals purchasing specially-designed or factory-modified vehicles approved for concession.

Who Cannot Apply:

Individuals without valid disability certification.
PwDs purchasing vehicles without adaptation (where adaptation is mandatory).
Applicants seeking concession for commercial or business-use vehicles.
Individuals availing the concession more frequently than permitted.
Applicants with incomplete documentation or non-compliance with excise rules.

Documents Required

Disability certificate issued by a competent medical authority
Aadhaar or government-approved ID
Driving licence (if self-driven vehicle)
Vehicle details and manufacturer’s pro forma invoice
Self-declaration for personal use
Adaptation certificate or modification details (if applicable)
Bank account details
Undertaking for compliance with excise rules

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

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Option 2: Apply Through the Manufacturer and Excise Authorities (Official Process)

Choose an eligible vehicle model approved for excise duty concession.
Submit disability certificate and personal details to the vehicle manufacturer.
Manufacturer processes documents and forwards them to excise authorities for approval.
Receive excise exemption approval before vehicle dispatch.
Proceed with purchase at the concessional excise duty rate.
Maintain records for future compliance and verification.