The India Autism Centre (IAC) has called for a complete exemption of disability support services from Goods and Services Tax (GST),arguing that the current tax framework imposes significant financial burden on families. A white paper released by the IAC in Kolkata outlines how taxing essential services such as therapy and rehabilitation creates barriers to access, ultimately hindering the inclusion of individuals with disabilities.
The report,titled “Financial Sector Reforms to Empower Persons with Disabilities,” advocates for a 0% GST rate on all disability support services. It highlights that while certain healthcare and educational services are exempt, many non-profit organizations providing critical disability services remain taxable. This oversight leaves families struggling to afford necessary care.
Sreerupa Chakraborty,Strategy Lead at IAC and co-author of the report,emphasized the lifelong nature of autism and other disabilities. She noted that families often face difficult choice of one parent leaving their job to provide care,which exacerbates their financial strain. “One person’s income stops. There are organizations like us (IAC) who can offer this ecosystem to families so they get the support they need, but we are being charged GST if the person with disability is not at the extreme end of the spectrum,” Chakraborty explained.
The white paper argues that current GST structure creates a systemic barrier to accessing vital services. It points out that therapy,rehabilitation, education, and community support are essential yet often taxed, which contradicts the intent of promoting inclusivity. Nipun Malhotra, Strategic Lead — Advocacy and Partnerships at IAC,remarked that disability should not be viewed as the sole responsibility of one government department. “Disability is an intersectional issue,” he stated, stressing the need for comprehensive policy consideration across various sectors .
The report criticizes the narrow definition of “charitable activities” that currently governs GST exemptions, which applies only to individuals with “severe” disabilities. This creates an arbitrary divide,leaving many who require ongoing support without necessary assistance. The authors propose shift from provider-based classification to a service-based classification,which would assess tax liability based on the essential nature of the service rather than the type of institution offering it.
Neurodevelopmental conditions like autism spectrum disorder and intellectual disabilities necessitate continuous,multidisciplinary interventions. The report argues that a single numerical severity score fails to adequately represent the diverse and evolving support needs of individuals with such conditions.
Financially,the implications are significant. In metropolitan areas, therapy costs can soar to ₹30,000 per month, not accounting for additional expenses related to caregivers, transportation,education,and assistive devices. The report cites that disability-related costs account for 20.32% of monthly household expenditures, with 57.1% of affected households facing catastrophic health expenditures.
Internationally, countries such as Australia, Canada,and the United Kingdom have adopted service-based tax frameworks that treat disability support as a public good rather than a discretionary expense. The IAC argues that as a signatory to the UN Convention on the Rights of Persons with Disabilities,India should align its tax policies to ensure that access to essential disability services is not hindered by financial constraints.
Malhotra further emphasized the need for a broader conversation about the rights of persons with disabilities . “Does a person with disability (PwD) keep proving their disability for a lifetime?” he questioned . He acknowledged the importance of welfare for vulnerable communities but stressed the necessity of ensuring equal citizenship and opportunities for individuals with disabilities.
Among its recommendations, white paper calls for amendments to GST notifications to explicitly exempt disability support services provided by eligible non-profit organizations. It advocates for removal of severity-based eligibility criteria and urges the inclusion of therapy, rehabilitation, education, vocational training, and community support services under the exemption.
