ITC on motorcycle

As per GST law, the ITC on motor vehicles paid shall not be allowed to set off against output tax liability. In another word, you cannot claim the credit on motor vehicles and other conveyance.

Example: Suppose you buy a car for your business. As per motor vehicle act, the car is covered under the definition of motor vehicle, hence ITC on car shall not be allowed.

Cases where Input Tax Credit (ITC) shall be available on motor vehicle under GST

There are only four cases where ITC on motor vehicles are allowed under GST. The four cases are as follows:

• Dealer of motor vehicles: If you are a trader of a motor vehicle, then ITC on cars purchased shall be allowed.
• Transportation of passengers:  If you are a travel agent or a taxi driver and providing services of transportation to the passengers, then the ITC shall be allowed to set off. 
• Driving schools:  If you are imparting training on driving, flying, navigating such vehicles or conveyance, then ITC shall be allowed on motor vehicles.
• The vehicle used for transportation of Goods: If you are using motor vehicles to transport your goods from one place to another, then the credit of GST shall be allowed. However, here we are not talking about the Goods Transport Agency (GTA).

ITC allowed only on motor vehcile as per the difinition of motor vehicle act 1988 and no ITC can be claimed on two wheeler.