GST: CBIC Clarifies ITC Eligibility for Goods Delivered Under Ex-Works Contracts as per 16(2)(b) of CGST Act

The CBIC has clarified the eligibility of Input Tax Credit (ITC) for goods delivered under Ex-Works contracts as per Section 162B of the CGST Act. This clarification focuses on the conditions under which businesses can claim ITC for goods delivered under Ex-Works contracts, where the delivery takes place at the seller’s premises. The directive seeks to clarify the application of ITC provisions in such contractual arrangements, helping businesses understand when they can and cannot claim credits. This decision is expected to resolve confusion and enhance compliance, providing businesses with a clearer understanding of their rights under GST law in such transactions.