Annuity for Construction of road is exempt from GST

Hon’ble Karnataka High Court quashed Circular No. 156/06/2021-GST which clarified that annuity paid as deferred payment for construction of road/highway is not exempt from GST.


Hon’ble Karnataka High Court held that the annuity is paid in lieu of toll/access charges. GST Council, in its 22nd meeting, decided to exempt annuity in lieu of toll charges. Notification issued also clearly exempts annuity paid for construction or maintenance of road.




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