A registered GTA business, operating under FCM and charging 12% GST for taxable transport, inquired about utilising Input Tax Credit (ITC) on vehicle repair bills specifically for vehicles used in transporting exempt goods, such as milk. The advice provided is that ITC is not eligible for exempt supplies, meaning the repair costs for vehicles used in milk transportation cannot be claimed.
20 August 2025
We are registered GTA, we are providing reefer vehicles for both taxable and exempted products (Milk) transportation. As we are under FCM, We are billing the transportation services under GST of 12% and for transportation of milk, we are billing under exempted services. Can we utilize the ITC of the vehicle repair bills which are used for transportation of milk?