GST ITC on Cars & Motor Vehicles : Analysis by TaxHeal

Meaning of ‘motor vehicle‘ : Motor Vehicle has meaning assigned to it in section 2(28) of Motor Vehicles Act – Section 2(76) of CGST and SGST Act.

As per section 2(28) of Motor Vehicles Act, 1988, Motor vehicle or vehicle means any mechanically propelled vehicle adopted for use upon roads whether the power of propulsion is transmitted thereto from external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include

i) a vehicle running upon fixed rails or

ii) vehicle of a special type adapted for use only in a factory or any other enclosed premises or

iii) a vehicle having less than four wheels fitted with engine capacity of not exceeding 25 (Twenty-five) cubic centimeters.

Download TaxHeal Mobile App