ITC can be taken or not?

In this case input tax credit (ITC) rules apply differently.

For expenses like vehicle maintenance or machinery repair related to the exempt supply unit, the GST paid on these expenses generally can't be claimed as ITC because they are related to an exempt supply.

However, if these expenses are attributable to both exempt and taxable supplies, you might need to apportion the ITC  based on the turnover of taxable supplies to total turnover. 

You can adjust GST on ezpene related to the taxable supply unit as per normal ITC rules for taxable supplies. 

Two units, one exempt and one taxable (same GSTIN):

• ITC on inputs used exclusively for the taxable unit (activated carbon) is fully available. ITC exclusively for the exempt unit (fibre) isn't. Common ITC (e.g. shared services) is apportioned under Rule 42 (inputs and input services) and Rule 43 (capital goods) based on turnover.

GST ITC on vehicle maintenance or machinery repairs attributable to the exempt fibre unit cannot be used to offset GST on the taxable activated-carbon unit’s sales, even though both units share one GSTIN. Under section 17(2) of the CGST Act, credit relating to exempt supplies must be reversed; common credit must be apportioned under the applicable rules.

If an expense genuinely serves both units, it may qualify as common input/input-service credit, subject to the prescribed apportionment. For a vehicle, also check whether ITC is blocked under section 17(5); repair and maintenance credit is not automatically available merely because GST was charged.

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