Motor Vehicles and GST

The term ‘motor vehicles’ is used in preference to the more general ‘means of transport. The term has been defined in Section 2 of CGST Act as under:
(76) “motor vehicle” shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988)
Thus, the statute draws its definition from the Motor Vehicle Act, which defines the term as under:

(28) “motor vehicle” or “vehicle” means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding twenty-five cubic centimetres;

Thus the definition is wide enough to cover all motor vehicles including two wheelers, three wheelers, four wheelers etc. This shall include all types of buses and trucks but excludes any trams, railways, rope cars etc., which are not plied on roads and also excludes vehicles meant to be used in closed premises like forklifts etc.Download The PDF for Read More

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