Input credit for GTA

This discussion clarifies whether a Goods Transport Agency (GTA) can claim Goods and Services Tax (GST) input tax credit (ITC) on the purchase of vehicles. Generally, if a GTA charges 12% output tax on its services, it is eligible to claim ITC on vehicle purchases. However, if the GTA charges 5% GST, ITC is not allowed. The option to pay GST at 12% and claim ITC must be chosen at the start of the financial year and maintained throughout.