National Highways Authority of India (Ministry of Road Transport and Highways, Government of India) We IE of-5 Ud 6, BCT 10, ENT, AE Fecal - 110 075 G-5 & 6, Sector-10, Dwarka, New Delhi-110075 ‘FAT/Phone : 91-11-25074100 / 25074200 NHAI/Policy Guidelines/ Accounts and Taxes/ 2023 Policy Circular No.3.3.28/ 2023 dated 17‘ January, 2023 {Decision taken on E-Office File No. NHAI/F&A/GST-2021-22/SM-Vol.IV (Comp. No. 114969)} Sub.: Clarification regarding applicability of GST on payment of Annuity under BOT projects completed before implementation of GST on 01.07.2017- reg. Ref: 1) NHAI Circular No. 3.3.17 dated 23.10.2017 2) NHAI Circular No. 3.3.23 dated 24.11.2021 3) NHAI Circular No. 3.3.24 dated 24.11.2021 4) CBIC Notification No. 32/2017 - CT (R) dated 13.10.2017 5) CBIC Notification No. 33/2017 - IT (R) dated 30.12.2022 6) CBIC Notification No. 15/2022 - CT (R) dated 30.12.2022 7) CBIC Notification No. 15/2022 - IT (R) dated 30.12.2022 In pursuance of above referred CBIC Notifications at Ref. 4) & 5), NHAI vide its Circulars at Ref. 1) to 3) had clarified that no GST is applicable on Annuity Payments in case of BOT (Annuity) Projects. 2. Now, Ministry of Finance, Department of Revenue vide its Notification at Ref. 6) have omitted Entry No. 23A from Notification No. 12/2017-CT (R) dated 28.06.2017 and vide its Notification at Ref. 7) have omitted Entry No. 24A from Notification No. 9/2017-IT (R) dated 28.06.2017 effective from 01.01.2023. Both the above-mentioned entries number 23A & 24 were as follows: sl. | Chapter, Section, Description of Services | Rate (per | Condition No. | Heading, Group or | cent.) Service Code (Tariff) 2347 | __ Heading 9967 Service by way of access to a Nil Nil 240 road or a bridge on payment of annuity. | 3. Hence, effective from 01.01.2023, GST is applicable on Annuity Payments in case of BOT (Annuity) Projects at applicable rates. However, if any Input Tax Credit is availed by the Concessionaire, the benefit of such ITC shall be passed on to NHAI. Further, it is clarified that GST amount as claimed in the invoices by the Concessionaire in terms of provisions mentioned in Concession Agreement may be paid along with their invoices, subject to condition that Concessionaire will submit the proof of deposition within 15 days of filing the statutory returns or along with the next invoice for verification of the deposition proof by NHAI, whichever is earlier. Contd...2/-4, Attention of field units is invited that where the date of tax invoice for annuity is before 01.01.2023 and payment is made on or after 01.01.2023, no GST shall be paid. 5. This issues with the approval of Competent Authority. Tr\o1]23 (Sanjay Kumar Patel) General Manager (Coord.) To: All Officers of NHAI HQ/ ROs/ PIUs/ CMUs/ Site Offices Copy to: 1, Hindi Officer for translation in Hindi. 2. Library for hosting the circular on library site. 3. Web Admin for circulation.