GST Council clarifies toll collection and road maintenance tax liability

The GST Council has issued clarifications on tax treatment for highway infrastructure operations. Concessionaires collecting tolls on highways will not face GST liability on the toll collection right itself, even if concession payments to authorities are structured upfront or spread over time.

The council also provided guidance on GST applicability for road maintenance services. Tax liability on maintenance services will arise only when funds are actually drawn and spent, rather than when money is simply held in escrow accounts pending expenditure.

These clarifications aim to remove ambiguity in GST treatment for highway toll operators and road maintenance contracts, providing certainty for concessionaires and authorities involved in highway infrastructure projects.