GST Notification No 10/2026-CTR
The Central Government, under Section 148 of the CGST Act, 2017, has notified a special procedure for payment of GST by registered concessionaires providing operation and maintenance services to the concessioning authority under a concession agreement.
Under this provision, the concessionaire shall pay GST on the amount charged or debited from the Escrow Account towards operation and maintenance expenses incurred during the concession period. GST shall be payable in the tax period in which such amount is charged or debited from the Escrow Account.
For this purpose, a Concession Agreement means an agreement under the Toll-Operate-Transfer (TOT) model, where the concessionaire pays an upfront concession fee and receives exclusive rights to demand, collect and retain toll charges from a road or highway, while being responsible for its operation and maintenance during the concession period.
The Concessioning Authority includes the Central Government, State Government, Union Territory, Local Authority, Governmental Authority or Government Entity entering into such an agreement.
This Notification will applicable from 01-11-2026.
