---
title: "India Autism Center Demands GST Abolition on Disability Care to Break Financial Barriers"
url: https://projectchintan.com/article/india-autism-center-demands-gst-abolition-on-disability-care-to-break-financial--8kapf
publisher: Project Chintan
author: Project Chintan Newsroom
section: Technology
published: 2026-08-01T13:23:53.000Z
modified: 2026-08-01T17:01:27.408Z
language: en-IN
---

# India Autism Center Demands GST Abolition on Disability Care to Break Financial Barriers

The India Autism Center is urging the government to scrap the Goods and Services Tax on disability support, citing heavy financial strain on families. A new white paper argues current tax laws create a structural gap that excludes many neurodiverse individuals from essential services.

## Key takeaways

- The India Autism Center recommends a 0% GST rate on all disability support services, including therapy and vocational training.
- Disability-related expenses consume over 20% of monthly household income for affected families in India.
- The IAC argues that severity-based tax exemptions are inadequate for neurodevelopmental conditions requiring lifelong care.
- Advocates call for India to follow Australia and Canada by treating disability support as an essential public good rather than consumption.

## The Case for a Zero-Percent Tax Framework

The India Autism Center (IAC) in Kolkata has formally proposed a total exemption of disability support services from the Goods and Services Tax (GST). In its latest white paper, titled Financial Sector Reforms to Empower Persons with Disabilities, the organization contends that the current 0% rate applied to healthcare and education must be extended to include therapy, rehabilitation, and community-based care. The report characterizes the existing tax structure as a structural barrier that imposes a lifelong financial burden on families already struggling with high costs of living.

Sreerupa Chakraborty, Strategy Lead at IAC and co-author of the report, highlights a critical disconnect between legislation and practical application. While some charitable exemptions exist, they often target only those at the most severe end of the disability spectrum. This leaves many non-profit providers and families in the middle of the spectrum liable for taxes on essential multidisciplinary interventions. Chakraborty notes that when a family cannot afford help, one parent typically must leave the workforce, doubling the economic impact by removing a source of household income.

## Flaws in Current Classification Systems

The IAC report critiques the government's reliance on provider-based classifications and numerical severity scores. Currently, tax liability is often determined by the type of institution providing the service rather than the service itself. The researchers advocate for a shift toward service-based classification, which would treat disability support as an essential public good. They argue that neurodevelopmental conditions, including autism spectrum disorder and intellectual disabilities, require lifelong support that cannot be measured by a single, arbitrary severity threshold.
- Catastrophic Expenditure: Disability-related costs currently account for 20.32% of monthly household consumption.
- Financial Strain: Approximately 57.1% of households with disabled members experience catastrophic health-related spending.
- Urban Costs: Monthly therapy in metropolitan areas can reach ₹30,000, excluding additional costs for transport, caregivers, and assistive technology.

## Global Precedents and Intersectional Policy

Nipun Malhotra, Strategic Lead for Advocacy and Partnerships at IAC and founder of the Nipman Foundation, emphasizes that disability is an intersectional issue involving housing, technology, and safety regulations. Malhotra argues that as a signatory to the UN Convention on the Rights of Persons with Disabilities, India should align with nations like Australia, Canada, and the United Kingdom. These countries utilize tax frameworks that view disability support as a right rather than discretionary consumption.

The white paper concludes that current policies fail to provide a level playing field for equal citizenship. By amending GST notifications to explicitly exempt therapy, vocational training, and community support provided by non-profits, the government could move beyond a welfare-only mindset toward genuine social inclusion.

Source: The Hindu — Sci-Tech

---
Canonical: https://projectchintan.com/article/india-autism-center-demands-gst-abolition-on-disability-care-to-break-financial--8kapf
Reported from: The Hindu — Sci-Tech