TaxTMI 
TaxTMI 
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
ITC on WCT
10 Jan 2025 
3 Replies 
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Place of Supply determines GST liability on cross border works contracts; GST applies and Input Tax Credit is available.
Place of Supply for a works contract with services rendered on immovable property in Nepal is the location of the Indian customer per the proviso to section 12(3) IGST, creating a GST liability and permitting Input Tax Credit; the supplier must invoice the Indian customer, who must undertake export formalities at the land customs station, and the supplier may generate an eway bill from place of dispatch to the land customs station with accompanying delivery challans and invoices. (AI Summary)
Place of Supply for a works contract with services rendered on immovable property in Nepal is the location of the Indian customer per the proviso to section 12(3) IGST, creating a GST liability and permitting Input Tax Credit; the supplier must invoice the Indian customer, who must undertake export formalities at the land customs station, and the supplier may generate an eway bill from place of dispatch to the land customs station with accompanying delivery challans and invoices. (AI Summary)