Clarification on availability of input tax credit as per clause (b) of sub-section (2) of section 16 of the Central Goods and Services Tax Act, 2017 in respect of goods which have been delivered by the supplier at his place of business under Ex-Works Contract

Input tax credit availability: deemed receipt at supplier's premises allows claiming credit under Ex Works delivery, subject to entitlement conditions.

A registered person is deemed to have received goods where the supplier delivers them to a recipient or any other person on the recipient's direction, including handing goods to a transporter at the supplier's premises; under Ex Works contracts this means a dealer may avail input tax credit when the OEM hands vehicles to the transporter at the factory gate, subject to entitlement conditions such as use in the course of business and denial where goods are diverted or later lost, stolen, destroyed, written off, gifted or supplied as free samples.