Other exempt services (Service by way of access to a Road or a Bridge on payment of toll charges) [ Entry no. 23 ] - GST Ready Reckoner - GST

Service by way of access to a road or a bridge on payment of toll charges Exemption Entry 23 It covers access to a road or a bridge on payment of toll charges. Services of toll collection on behalf of an agency authorized to levy toll are in the nature of exemption of services. Therefore, there is no GST payable on Services by way of access to a road or a bridge on payment of toll charges. Few Clarifications : Circular No. 164 /20 /2021-GST clarifies that Issues Held that Whether GST on Overloading charges collected at Toll Plazas applicable Vide notification dated 25th Sep. 2018, issued by Ministry of Road Transport And Highways, overloaded vehicles were allowed to ply on the national highways after payment of fees with multiplying factor of 2/4/6/8/10 times the base rate of toll. Therefore, it essence overloading fees are effectively higher toll charges. it is clarified that overloading charges at toll plazas would get the same treatment as given to toll charges ie exempt Example : Raju has collected toll on behalf of an agency authorized to levy toll for newly made roads at the Yamuna Express Highway. This shall be taken as exempt services.