Clarification on Availability of ITC on Goods Delivered by Supplier at His Place of Business Under Ex-Works Contract | Circular

Circular No. 241/35/2024-GST dated December 31st, 2024

The CBIC has issued circular to clarify that input tax credit may be available to the registered person on receipt of goods by the said registered person from the supplier at his (supplier’s) factory gate or business premises where the contract between the supplier and recipient is an Ex-Works contract.

In Ex-works contracts, the property in the said goods to be considered to have been passed on to the recipient, at the time of hand over of the said goods at the factory gate of the supplier, even though the goods may be physically received by the recipient after the transit. Resultantly, ITC can also be availed upon hand over of the said goods at the factory gate of the supplier, even though the goods may be physically received by the recipient at a later stage.

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