Summary: The Ministry of Finance (Department of Revenue) has issued Notification No. 10/2026-Integrated Tax (Rate), dated 27 October 2026, specifying a special procedure for payment of integrated tax on operation and maintenance services supplied by registered concessionaires under certain road and highway concession agreements. The Central Government has issued the notification on the recommendations of the GST Council, exercising powers under Section 20 of the Integrated Goods and Services Tax Act, 2017, read with Section 148 of the Central Goods and Services Tax Act, 2017. The notification covers concessionaires who supply operation and maintenance services to a concessioning authority during the concession period. These registered persons are required to pay integrated tax on the amount charged or debited from an Escrow Account maintained in accordance with the concession agreement towards operation and maintenance expenses. The specified tax period is the period in which the expenditure is charged or debited. Accordingly, the procedure links the amount on which integrated tax is payable and the relevant tax period to the expenditure recorded through the escrow arrangement. The notification defines a Concession Agreement as an agreement under the Toll-Operate-Transfer model, in which a concessionaire pays the concession fee upfront, receives exclusive rights to demand, collect and appropriate toll from a road or highway, and undertakes its operation and maintenance during the concession period. A concessioning authority may be the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity. The notification comes into force on 1 November 2026.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 10/2026-Integrated Tax (Rate) | Dated: 27th October, 2026
G.S.R. 949(E).— In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby notifies the following class of registered person, namely: –
(i) Concessionaire under a concession agreement, who supplies operation and maintenance services to the concessioning authority during the concession period,
as the registered persons, who shall pay integrated tax on the supply of such operation and maintenance services on the amount charged or debited from the Escrow Account, maintained in accordance with the concession agreement, towards operation and maintenance expenses incurred by such registered persons, in
2. Explanation: – For the purpose of this notification, -a tax period in which such expenditure is so charged or debited.
(i) “Concession Agreement” means an agreement entered into between a concessionaire and the concessioning authority under the Toll-Operate-Transfer model, whereby the concessionaire is granted the exclusive rights to demand, collect and appropriate toll in respect of a road or highway and is required to operate and maintain such road or highway during the concession period where the concessionaire is required to pay the concession fee upfront;
(ii) “Concessioning authority” means the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity which enters into the Concession Agreement.
3. This notification shall come into force with effect from the 1st day of November, 2026.
[F. No. 190354/142/2026-TRU Section-CBIC]
MD. ADIL ASHRAF, Under Secy.
