The CBIC vide Circular No. 164/20/2021-GST dated October 06, 2021 has provided clarification regarding GST rates & classification based on the recommendations of the GST Council in its 45th meeting held on September 17, 2021.
Applicability of GST on overloading charges at toll plaza:
Representations have been received seeking clarification regarding applicability of GST on Overloading charges collected at Toll Plazas.
Entry 23 of notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, exempts Service by way of access to a road or a bridge on payment of toll charges.
Vide notification dated September 25, 2018, issued by Ministry of Road Transport And Highways, overloaded vehicles were allowed to ply on the national highways after payment of fees with multiplying factor of 2/4/6/8/10 times the base rate of toll. Therefore, it essence overloading fees are effectively higher toll charges.
As recommended by the GST Council, it is clarified that overloading charges at toll plazas would get the same treatment as given to toll charges.
The Circular can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular%20No.%20164_2021_GST.pdf;jsessionid=78C42EDA20161CCA3B60E7E05C91D6A8