ITC on WCT

[RAVINDER GAMBHIR]

One of my clients got a contract from Indian customer to execute Works Contract Services in Nepal. The material involved and the incidental services will be provided by the suppliers from India. What will be applicability of GST and the availability of ITC as material will have to be moved to Nepal and services will be provided on immovable property situated in Nepal

AI Summary

GST Applies to Works Contract Services in Nepal; ITC Eligible; Export Docs and E-way Bill Required for Material Movement. A client received a contract for Works Contract Services (WCS) in Nepal, with materials and services supplied from India. The applicability of Goods and Services Tax (GST) and Input Tax Credit (ITC) was questioned. It was clarified that GST liability exists as the Place of Supply (PoS) is the Indian customer's location, making ITC eligible. Concerns about documentation for moving materials to Nepal, such as invoices and delivery challans, were addressed. It was advised that the Indian customer must file export documents, and an e-way bill should be issued for movement within India up to the land customs station.