The Government has issued Notification No. 10/2026-Central Tax (Rate) in October 2026, setting out special GST provisions for highway concessionaires working under the Toll-Operate-Transfer (TOT) model.
These concessionaires must pay GST on the amount charged or debited from the escrow account for operation and maintenance services supplied to the concessioning authority during the concession period. The tax is payable for the tax period in which that amount is charged or debited. The provisions apply from 1 November 2026.
What to do: TOT concessionaires should track escrow debits period by period and align them with their GST return workings from November 2026.
