Accordingly, in light of the order of ITAT, New Delhi, it is advised that no TDS should be deducted on Payment of Grant (VGF) in future.

It is also clarified that the applicability of the change of rate from 12% to 18% shall be governed in accordance with the time of supply under section 14 of the CGST Act.

The matter has been examined in the ministry and it is hereby clarified that as per the relevant clause of the Concession Agreement, the threshold limit shall not be deducted as the Concessionaire has to be placed in the same financial position.

However, If the concessionaire claimed GST due to a change in rates along with the claim under a change in Law effect, then NHAI to deduct IT-TDS, GST-TDS, and worker welfare cess on the total amount under a change in the law without splitting the amount of GST.

In this regard, it is clarified that GST calculations for Change in the rate GST w.e.f. the date Prescribed by the GST authority shall be applicable for payment based on agreement rates & Payment based on market rates for tenders received on or before the prescribed date.