GST timing for Toll-Operate-Transfer concessions: concessionaires pay integrated tax when operation and maintenance expenses are charged to escrow accounts.
Notifications
GST
Concessionaires operating under Toll-Operate-Transfer concession agreements must pay integrated tax on operation and maintenance services supplied to the concessioning authority based on amounts charged or debited from the designated escrow account towards operation and maintenance expenses. Tax becomes payable in the tax period in which the relevant expenditure is charged or debited to that account. The procedure applies where the concessionaire has exclusive toll collection rights, must operate and maintain the road or highway during the concession period, and pays the concession fee upfront. It takes effect from 1 November 2026.
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