GST on annuity payments may be taxable unless exemption explicitly covers construction-related annuity receipts.
Annuity payments by NHAI to concessionaires for road projects may be taxable if those receipts are treated as consideration for construction/works-contract services, because the exemption entries were framed for supporting transport services rather than construction services. Though Council minutes and an appellate ruling indicate intent to treat annuity like toll (and thus exempt), a government clarification limited the exemption's scope, creating an unresolved classification gap. The article urges industry representations and use of government exemption powers to secure relief for annuity-paid construction receipts. (AI Summary)