The Government of West Bengal on January 08, 2025, issued clarifications on the availability of input tax credit as per clause (b) of sub-section (2) of section 16 of the West Bengal Goods and Services Tax Act, 2017 in respect of goods, which have been delivered by the supplier at his place of business under ExWorks Contract.
The following has been stated: -
•The Commissioner of the West Bengal Goods and Services Tax (WBGST) has clarified the availability of Input Tax Credit (ITC) under Ex-Works (EXW) contracts in the automobile sector.
•ITC can be claimed when goods are delivered at the OEM's factory gate, as the goods are deemed received at that point, provided the goods are used for business purposes. However, ITC is not available if the goods are diverted for non-business purposes or if they are lost, stolen, destroyed, or gifted after receipt.
•This clarification ensures uniform implementation of the law.
The detailed circular is given in the document below.
[Trade Circular No. 02/2025]
