Annuity paid instead of toll charges to developers is exempt from GST

In re Ms Nagaur Mukundgarh Highways Pvt. Ltd. (GST AAAR Rajasthan)

Annuity payment is exempted from GST  in terms of Entry No. 23A of the Notification No.12/2017-Central Tax (Rate) Dt. 28.6.2017. However only 50% ITC of GST paid on Input & Input services used in the construction phase, is available. Full ITC of the GST paid on Input & Input services used in the O&M phase is available.

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