In your particular case, as my colleague mentioned, municipalities are entitled to 100% rebate of the GST they pay. If they pay for a service and they pay GST, they are allowed to get 100% of it back. How a municipality chooses to structure its fares.... The relief has been put in place for municipal transit services, so it's generally characterized by what a municipal transit service is. For example, if you personally were to call a taxicab because you didn't have the availability of municipal transit, that wouldn't be treated as municipal transit.
There are various categories of what is considered municipal transit. It would be for the CRA to make the characterization of what an eligible municipal transit service is.