The Government of Rajasthan on July 09, 2024, issued clarification on the time of supply with respect to the supply of services of construction of road and maintenance thereof of National Highway Projects of National Highways Authority of India (NHAI) Hybrid Annuity Mode(HAM) model.
The following has been stated: -
•It is clarified that the tax liability on the concessionaire under the HAM contract, including on the construction portion, would arise at the time of issuance of invoice, or receipt of payments, whichever is earlier, if the invoice is issued on or before the specified date or the date of completion of the event specified in the contract, as applicable.
•If invoices are not issued on or before the specified date or the date of completion of the event specified in the contract, tax liability would arise on the date of provision of the said service (i.e., the due date of payment as per the contract), or the date of receipt of the payment, whichever is earlier.
The detailed circular is given in the document below.
[GST Circular No.05/2024]
