The Circular provides clarity on time of supply for services in ...

New guidelines on tax for road construction services under HAM model: time of supply based on invoice/payment date. Interest should be included in taxable value.

Circulars     GST

June 27, 2024

The Circular provides clarity on time of supply for services in construction of roads and maintenance under the Hybrid Annuity Mode (HAM) model for National Highway Projects. It states that under the HAM model, where payments are staggered over the contract period, the time of supply is determined by the date of invoice issuance or payment receipt, whichever is earlier. If the invoice is not issued as prescribed, the time of supply is the date of service provision or payment receipt. The Circular also clarifies that interest components in payments to the concessionaire should be included in the taxable value. Tax liability arises based on the above principles.

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