Sec 2(76) – Motor vehicle

Section 2(28) reads as under:
“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.
From this, it can be understood that all vehicles such as cars, scooters, bikes, auto-rickshaws, trucks, buses, tempo-travellers, etc. that are meant for usage on roads will be covered within the meaning of ‘motor vehicles’. The implication of this definition is that input tax credit is not available in respect of inward supply of motor vehicles, unless they are used for specific purposes (being transportation of goods, or for making taxable supplies of further supply of such vehicles, or supplying passenger transportation services or for imparting training in relation to such vehicles).