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of <h1>Karnataka clarifies input tax credit rules for construction services under GST Act 2017, effective April 1, 2019.</h1> The Karnataka Goods and Services Tax (Fourth Removal of Difficulties) Order, 2019, issued by the Government of Karnataka, clarifies provisions under the Karnataka Goods and Services Tax Act, 2017. It specifies that for services related to construction, the input tax credit attributable to taxable supplies, including zero-rated and exempt supplies, should be determined based on the taxable versus exempt area of the construction. This Order, made under section 172 of the Act, aims to resolve difficulties in applying input tax credit rules and is effective from April 1, 2019.
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