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?

AI Summary

Debate on IGST Applicability: Movement of Goods from Factory Gate Under Section 10(1)(a) or 10(1)(c) of IGST Act? XYZ, a company registered in Maharashtra, supplies goods to PQR, also registered in Maharashtra, and issues invoices on an ex-works basis, handing over the goods at the factory gate. The discussion revolves around whether this transaction involves the movement of goods under Section 10(1)(a) of the IGST Act, or if it does not, under Section 10(1)(c). The consensus among the respondents is that since PQR will move the goods from the factory gate to their location, Section 10(1)(a) applies, and IGST will be charged on such transactions.