Input tax credit apportionment by construction area determines taxable and exempt credit allocation under GST rules. The Order clarifies that for services under paragraph 5(b) of Schedule II (construction services), input tax credit attributable to taxable supplies, including zero-rated and exempt supplies, must be apportioned based on the area of the complex, building, civil structure or part thereof that is taxable versus exempt.
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Input tax credit apportionment by construction area determines taxable and exempt credit allocation under GST rules.
The Order clarifies that for services under paragraph 5(b) of Schedule II (construction services), input tax credit attributable to taxable supplies, including zero-rated and exempt supplies, must be apportioned based on the area of the complex, building, civil structure or part thereof that is taxable versus exempt.
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