TaxTMI 
TaxTMI 
R/sir I am registered GTA opted forward charge (FCM) .we provide service to cement industries @12%gst we are also providing exempted services to govt for transportation of agriculture products wheat and paddy .sir we have taken itc on purchase of truck. Sir can we avail 100% ITC either we have to reverse ITC for part of transportation of agriculture products
ITC FOR GTA
12 Apr 2023 
4 Replies 
2073 Views Asked by
Input Tax Credit apportionment required where transport assets serve both taxable and exempt services, with reversals based on turnover.
ITC on trucks is fully available for vehicles used exclusively for taxable supplies and ineligible for those used exclusively for exempt supplies; where vehicles serve both, ITC must be apportioned and reversed pro rata based on the taxable-to-exempt turnover ratio, and detailed log books and usage records must be maintained to substantiate the allocation and minimize disputes. (AI Summary)
ITC on trucks is fully available for vehicles used exclusively for taxable supplies and ineligible for those used exclusively for exempt supplies; where vehicles serve both, ITC must be apportioned and reversed pro rata based on the taxable-to-exempt turnover ratio, and detailed log books and usage records must be maintained to substantiate the allocation and minimize disputes. (AI Summary)