CG Tollway Limited Vs Union of India & Ors. (Supreme Court of India)
Supreme Court issues notice and stays Rajasthan High Court order upholding GST on toll-road concessionaire under DBFOT/BOT (Toll) model
The proceedings arose from a challenge to GST liability imposed on a concessionaire operating a national highway project under a Design, Build, Finance, Operate and Transfer (DBFOT) / BOT (Toll) concession agreement with the National Highways Authority of India (NHAI). The Deputy Commissioner, exercising powers under Section 73 of the Rajasthan Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017, held the concessionaire liable to pay GST of ₹16,36,20,418 along with interest and penalty. The Appellate Authority upheld the order, following which the concessionaire approached the Rajasthan High Court.
Before the High Court, the petitioner contended that no service was provided to NHAI and therefore there was no supply attracting GST. It relied on Entry 23 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, Circular No. 150/06/2021-GST dated 17.06.2021, and submissions that the only consideration received was the right to collect toll, which it claimed was exempt. The petitioner also argued that construction work had been executed through a subcontractor that had already discharged GST, that similar proceedings had been dropped in Gujarat and Karnataka, and that taxing the petitioner again would amount to double taxation. Reliance was also placed on decisions including Larsen & Toubro Ltd. v. State of Andhra Pradesh, State of Andhra Pradesh v. Larsen & Toubro Ltd., and GMR Pochanpalli Expressways Limited v. Additional Director, DGGI and Ors.
