are TST TSA TTARTTOT creer srsvssirenasren ®t ee vitaet ait ast warerq) AW) Fax :91-11.25099507 | 25003514 National Highways Authority of India (Ministry of Road Transport and Highways) HS WH 6, Bxet-10, Brea, AE fRcett-110075 6-5 & 6, Sector-10, Dwarka, New Delhi-110075 NHAI/F&A/GST-2017-18/SM Dated 5"*March, 2018 CIRCULAR Subject: - Applicability of GST on Hybrid Annuity Projects- Clarification on Pre-Bid Queries - reg. Ref:- (1) Circular no. 3.3.14 dated 29.09.2017 (2) Circular no. 3.3.17 dated 23.10.2017 In continuation to the above referred circular, following is hereby further clarified for avoidance of any doubt on GST issues to the prospective bidder for submitting their bid in respect of HAM projects:- (@ Applicability of GST on payment during construction i.e. 40% of Bid Project Cost may continue to be followed as already clarified under para-l of the policy circular no. 3.3.14 dated 29.09.2017. (ii) Exemption of application of GST on Annuity Payments may continue to be followed as per policy circular no. 3.3.17, dated 23.10.2017, (ii) Interest of payment of Annuity amount, it is clarified that GST shall not Payable on such interest payments, since, interest is payable on the reducing balance of the completion cost as per the clause no. 23.6.4 of MCA, ¥) Applicability of GST on payment of Operation & maintenance cost, it is now clarified that not only to the extent of first year O&M, GST as per prevailing fate is applicable on entire payment of Operation and Maintenance (OAM) cost aS per clause no. 23.7 of MCA with 100% input Tax credit. (¥) GST as per applicable rates on Bonus for early completion as per clause no, 23.5 of MCA shall continue to be followed as per clarification already mentioned under para-IV of circular no. 3.3.14, dated 29.09.2017, ‘This is issued with the approval of Competent Authority. (Sibafiarayan Nayak) CGM (FA) Copy to:- I. AU NHAl HQ/ROs/PIUs H.-S to Chairman Il. PS to all Members 1. Web Admin for hosting on GST Portal Ve Library