Summary
- The Rajasthan High Court upheld the levy of GST on annuity payments under a road concession agreement, classifying them as taxable works contract services.
- In M/s Nagaur Mukundgarh Highways Pvt. Ltd. v. Central Board of Indirect Taxes and Customs, the Court ruled that the exemption under Entry 23A of Notification No. 12/2017-Central Tax (Rate) was inapplicable.
- The Supreme Court has since issued notice on September 21, 2026, staying further coercive actions against the petitioner while examining the case's implications.
- This decision raises critical questions about the binding nature of advance rulings and may influence ongoing litigation across various High Courts regarding GST on annuity payments
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