Fwd: FW: [19-12/SPB/Misc/6] - SPB No 916 - Revised Policy and Invoicing Process for

Physically Handicapped Customers

1 message

B R Kayasth <brkayasth@gmail.com> Fri, 5 Jun, 2020 at 1:33 PM

To: neeraj.eme@gmail.com

Dear Sir,

        PFA.

Sales Policy Bulletin No. 916

Date – 11th Dec 2019
Subject – Revised Policy and Invoicing Process for
Physically Handicapped Customers
 
 

Dear Dealers
 

This is with reference to purchase of vehicles by Physically Disabled Customers at concessional

GST rate.
 
As per earlier policy, concessional GST rate of 18% was applicable on purchase of Auto
Transmission (AT) / Automatic Manual Transmission (AMT) / Auto Gear Shift (AGS Cars) by
Customers with Physical Disability (with Left Leg Disability only).
 

However Government of India has recently made following changes in the policy :
 
1)   Ministry of Finance have made amendments in the process for passing on the GST benefit to
Physically Handicapped persons and have issued Notification No. 14/2019-Central Tax (Rate) and
2/2019-Compensation Cess (Rate) dated 30th Sep’19 (copy of notification is enclosed as Annexure
1).
 
2)   Also Ministry of Heavy Industries and Public Enterprises have issued Revised Guidelines on
24th Oct, 2019 for issuing the GST concession certificate for purchase of vehicles now applicable
ONLY for persons with Orthopedic Physical Disability (copy of the Guidelines is issued as Annexure
2).
 

3)   In view of these Notifications and guidelines, following are the major changes related to
applicability and invoicing of vehicles to persons with Physical Disability :  
 

S.No. Particulars Earlier Process / Legal Revised Process / Legal

Requirement
1 Basic The car should be capable
Condition of being used by
Physically Handicapped
Person.
Therefore AT/AMT/AGS
vehicles being purchased
by physically handicapped
person (with left leg
disability) were only
considered.
2 Type of All big and small AT/
vehicle AMT/AGS vehicles were
covered
3 Method of MSIL was invoicing
Invoicing vehicle for Physically
Handicapped person at
concessional GST rate to
Dealer and then dealer
raised invoice on
customer with
concessional GST
4 Other  
procedural
changes in
new
guidelines
Requirement
The motor vehicle being purchased
should be used by persons with
Orthopedic Physical Disability
(>=40% disability)
Therefore earlier condition that GST
condition will be given to only Left
Leg disability customer buying an
AT/AMT/AGS vehicle is removed.
Only small vehicles with following
criteria will be covered :-
 
Length <=4000 mm &
Engine Capacity <=1200 cc (For
Petrol, LPG, CNG vehicles);
Engine Capacity <=1500 cc (For
Diesel vehicles)
1.   Dealer will now be Directly
raising Invoice for delivering
vehicle from his own stock to
Physically Handicapped person.
 
2.   This will fasten up the
process of invoicing vehicle to
customer (this will also be
important because now the DHI
certificate will be valid only for 3
months from date of issue of
the certificate)
1.   The customer while applying
to Department of Heavy
Industry
      (DHI) has to specify the details
of vehicle to be purchased and
dealer

     from  whom he will purchase

the vehicle.
 

2.   The certificate issued by DHI

will be valid only for 3 months
from date of its issue.
 

3.   DHI will send copy of the

certificate to the dealer/RTO for
records and cross checking/
confirmation.

 
4.   The Dealer has to stamp
such invoice with hologram
symbol of

‘To be registered as Adapted

Vehicle’.
 

5.   Such vehicles will be

registered as ‘Adapted Vehicle’.

6.   The customer has to inform

Department of Heavy Industry
about purchase of vehicle and
Registration No. of vehicle
within period of 30 days from
date of registration of vehicle.
     
 

 
 

4)   There is no change in the Concessional GST rate applicable for customers as per details
mentioned below :
Concessional GST rate applicable      :         18%

Compensation Cess applicable           :         0%

  

* Any other cess like Kerala Flood Cess will continue to be applicable for such customers as well.

Terms and Conditions:

Conditions to be fulfilled for the above concessional rate of GST and Compensation Cess :-

 
An officer not below the rank of Deputy Secretary to the Government of India in the Department of Heavy
Industries certifies that the said goods shall be used by the persons with orthopedic physical disability in
accordance with the guidelines issued by the said department.

 
The Revised Process for Invoicing Vehicle to a person with Orthopedic Physical Disability (>=40%
disability) in DMS, is as follows :-

 
1.    For customers who approach Dealership to avail this GST concession, the Dealer
shall advise the customer to procure a Certificate from Department of Heavy Industry
by submitting the following documents:-

 
(a)An application in prescribed format (Annexure-A). In this application form, apart
from other details, customer has to mention :
                                                           i.    Details of Model and Variant he intends to
purchase.
ii.    Details of Dealer from where customer will
                                                         
purchase the vehicle.
iii.    Details of the RTO where the car is to be
                                                        
registered. The dealer  may assist the customer with such details.
 
(b)A Medical Certificate duly signed and countersigned as per prescribed format
(Annexure-B)
 
(c)  Self-declaration by customer on a plain paper that he has not availed this
concession in last 5 years and that he will not dispose the car purchased with GST
concession, for a period of 5 years after purchase (format of the declaration is given
as Annexure C)
 
(d)Copies of Income Tax Return filed by customer for the last three years.
 
The customer has to submit these documents to:-

The Under Secretary (AEI Section)

Department of Heavy Industry
Room No.428, Udyog Bhavan,
New Delhi-110011.
Tel: 011-23061490
 
2.    After processing of the customer’s application, DHI is expected to issue certificate
for availing GST concession in the prescribed format (Annexure D) to the applicant
within a period of 4 weeks from the date of receipt of application, complete in all
respect.
 
3.   The customer must submit the following documents to the Dealer :
 
a)   The original certificate obtained from Department of Heavy Industry for which :
a.   Dealer to verify the genuineness of the certificate- DHI will send a copy of
the certificate to the respective dealer, OEM and RTO for their records and
cross check/ confirmation.
b.    Dealer should take Original DHI certificate from customer and cross
cross/ verify the same with the copy of certificate which DHI has sent
directly to that dealer.
b) Copies of documents as mentioned in Para 1 (a), (b) and (c) above which customer
has submitted to DHI
 
c) Indemnity Bond as per format in Annexure-E.
 
4.    The certificate issued by DHI would be valid for a period of 3 months from date of
issue of the certificate and the vehicle would have to be purchased by the applicant
within this three months period to avail the concession.
Accordingly, dealers should ensure that the vehicle invoice date for such cases is
within 3 months of the date of issue of certificate by DHI.

The dealer should cross check the dealer details and vehicle model-variant details as
per DHI certificate before invoicing.
 
 5.    Dealer after ensuring that all documents are satisfactory as per requirement, to
proceed for raising invoice to customer after taking the Vehicle Sale amount from
customer and reducing any Booking amount paid by customer.

The invoice needs to be raised in the name of individual in whose name GST certificate
is issued by DHI with concessional GST rate.
 

Note : Necessary changes are being made to DMS system to enable dealers to do
such invoicing, details of the same will be shared by concerned DMS

Coordinators from respective Regional Offices.

 
6.    Dealer has to stamp the invoice of all such cars purchased with GST concession
with hologram symbol of ‘To be registered as Adapted Vehicle’.
 
7.   All Vehicles sold on the strength of certificate issued by DHI and with concessional
GST would be registered as “Adapted Vehicle” as per the provisions of Motor Vehicle
Act, 2019. Dealer must ensure that such vehicles get registered with RTO as “Adapted
Vehicle” only.
 
In case the final registration of the vehicle is being taken care by the customer
himself, then dealer should keep the differential tax amount as security deposit from
customer.  
 

Once the customer gets the vehicle registered as “Adapted Vehicle” as per the
provisions of Motor Vehicle Act, 2019 and submit copy of RC to the dealer evidencing
same, then the dealer can refund the security amount back to customer.
 
8.   Applicant would inform DHI about the purchase of vehicle and Registration number
of vehicle to Department of Heavy Industry within a period of 30 days from date of
registration of vehicle. (To facilitate the customers, the dealer can take declaration from
customer on plain paper in format enclosed as Annexure-F and courier the same to DHI
at above given address on behalf of customer. The dealers are advised to keep copy of
such declaration signed by customer, courier receipt and the copy of vehicle RC where
the vehicle is mentioned to be registered as ‘Adapted Vehicle’ in their records)
We hope that this would help you provide a better level of service to physically handicapped
customers and hence ensure higher customer satisfaction.
 

Happy Selling!!!
 
 

Regards
 

Ram Suresh Akella                                                                                          Bhuvan Dheer

Executive Vice President (Sales & Network – Arena Channel)                               Vice President -
Sales & Network (NEXA)
 

 
 
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Regards,
---
BR Kayasth 
Hony. Sub Major (Retd)
Chief Manager
Sainik Car Options And Services Pvt.Ltd.
Mob : 9873039856

POSTAL ADDRESS:-
Sainik Car Options & Services Pvt.Ltd.
(Attn : Sub Maj BR Kayasth )
Shop No. DCB/111/1/7
(Opp. Bharat Petrolium)
Gopinath Bazar, Delhi Cantt- 110010
Mob - 9873039856