The Government of Uttar Pradesh on January 06, 2025, issued clarifications on the availability of input tax credit as per clause (b) of sub-section (2) of section 16 of the Uttar Pradesh Goods and Services Tax Act, 2017 with respect to goods, which have been delivered by the supplier at his place of business under Ex- Works Contract.
The following has been stated: -
•The Uttar Pradesh GST Commissioner clarifies that under an Ex-Works (EXW) contract, the dealer can claim Input Tax Credit (ITC) when the supplier delivers goods at the factory gate, as per clause (b) of sub-section (2) of section 16 of the UPGST Act.
•The registered person is deemed to have "received" the goods when delivered to the transporter or any other person, based on the registered person's direction.
•ITC is allowed if goods are used in the course of business but disallowed if diverted for non-business purposes or lost.
The detailed circular is given in the document below.
[Circular No - 2425038]
