Ex - Works Supply and Movement of Goods

[Kaustubh Karandikar]

XYZ registered in Maharashtra supplying goods to PQR who is buyer and registered in Maharashtra. XYZ issuing invoice on ex – works basis and handing over goods at factory gate to PQR. In this situation, whether it will be treated as movement of goods is taking place and therefore it will attract provisions of Section 10(1)(a) or it will be treated as does not involve movement of goods and therefore it will attract provisions of Section 10(1)(c) of IGST Act?

[Rajagopalan Ranganathan]

Sir,

Please clarify whether PQR is going to keep the goods at the factory gate of XYZ?. In my opinion though XYZ hands over the goods to PQR at the factory gate PQR is not going to keep the goods at the factory gate of XYZ. He will certainly move the goods to his location. In this case the transport may be arranged by PQR on his account. Therefore Section 10 (1) (a) of IGST Act is applicable.

[KASTURI SETHI]

Section 10(1)(a) of IGST Act is applicable.

[YAGAY and SUN]

Earlier there was confusion on EX Work Supplies but now this matter is settle and IGST will be charged on such transactions.

[Ganeshan Kalyani]

I agree with the views of the experts.

AI Summary

Ex works supply treated as movement of goods, attracting IGST tax when buyer arranges transport and takes delivery.
When a buyer takes delivery of goods at the seller's factory gate on an ex works basis and arranges transport to his location, physical movement of goods is treated as occurring and Section 10(1)(a) of the IGST framework applies, leading to the chargeability of IGST on such ex works supplies.