Kolkata
A white paper issued by the India Autism Centre has urged the government to exempt disability support services including therapy, rehabilitation and community care from GST. The document contends that applying the tax to these services creates obstacles to care and imposes lasting financial strain on families.
The opening section of the report, titled Financial Sector Reforms to Empower Persons with Disabilities, proposes a zero GST rate for all such services. It states that the present tax rules overlook the multidisciplinary character of disability care. Although exemptions cover healthcare, education and some charitable work, many non-profit providers fall outside these areas and must charge the tax.
Sreerupa Chakraborty, Strategy Lead at the centre and co-author of the paper, noted that autism and disability require ongoing care. One parent often leaves employment to provide support, raising household costs while reducing income. Organisations can supply needed services, yet GST applies unless the individual meets strict severity criteria, revealing a gap between policy and practice.
The report describes the GST system as a structural barrier. Services such as therapy, rehabilitation, education and community support frequently incur the tax despite their essential role. Nipun Malhotra, Strategic Lead for Advocacy at the centre, emphasised that disability is an intersectional matter involving multiple ministries and policy areas including housing, technology and safety standards.
Current exemptions rely on a narrow definition of charitable activities limited to severe disabilities, creating an arbitrary distinction. The authors recommend moving from a provider-based to a service-based approach that focuses on the nature of the support rather than the institution delivering it.
Neurodevelopmental conditions like autism spectrum disorder often need lifelong multidisciplinary help, rendering severity thresholds inadequate. Therapy costs in major cities can reach 30,000 rupees monthly, excluding other expenses. Disability-related spending accounts for over 20 percent of household consumption in affected families, with more than half facing catastrophic health costs.
The paper cites service-based tax models in Australia, Canada and the United Kingdom that treat disability support as an essential public good. As a signatory to the UN Convention on the Rights of Persons with Disabilities, India should adopt similar measures, the authors argue.
Recommendations include amending GST rules to exempt services from eligible non-profits, removing severity-based limits and extending relief to therapy, rehabilitation, education, vocational training and community support.
