Exemption for vehicle hire extends to rentals to public transport undertakings and electrified multi-passenger vehicles, preserving GST exemption. Services by way of giving on hire of motor vehicles are exempt from GST when supplied to specified recipients: a State transport undertaking, a goods transport agency for transportation of goods, electrically operated multi-passenger vehicles to a local authority, and motor vehicles used to transport students, faculty and staff for educational institutions up to higher secondary level; the statutory definition of State transport undertaking applies and 'giving on hire' includes renting irrespective of route or timing control.