Rajasthan HC Upholds GST on BOT Highway Project as Toll Rights Constitute Consideration for Construction Services

CG Tollway Ltd Vs Union of India (Rajasthan High Court) The Rajasthan High Court considered a challenge to orders passed by the GST authorities holding a concessionaire liable to pay GST of ₹16.36 crore along with interest and penalty in relation to a highway project executed under a Build, Operate and Transfer (BOT) toll model. The concession agreement entered into with NHAI required the concessionaire to design, build, finance, operate and transfer the highway, while also granting it the right to collect toll during the concession period. The construction work was executed through a subcon...