14 Points
Joined August 2017
One very important thing which is often overlooked is the definition of the term “Motor Vehicle” under GST. We generally take it to mean that all types of vehicles, as nowadays everything is run by motor. But as per Section 2(76) of the Central GST Act the expression ‘motor vehicle’ shall have the same meaning as assigned to it in Clause (28) of Section 2 of the Motor Vehicle Act, 1988.
Now, when we look at that definition, it does not include the vehicles used as mining equipment, like, tippers, dumpers! Therefore, as per present provisions, the GST charged on purchase of earth moving machinery & vehicles, including dumpers, tippers used for transportation of goods by a business will be allowed as input credit. This is indeed a very important point for mining businesses.