The Board has addressed queries about the GST treatment for services related to road construction and maintenance under the Hybrid Annuity Model (HAM) used by the National Highways Authority of India (NHAI). In this model, part of the payment is made during construction, and the rest is paid as annuity over several years.

Under the HAM model, which involves both construction and ongoing maintenance of highways, payments are spread over the contract period. This setup qualifies as a “”continuous supply of services”” under the CGST Act. The GST liability for such services arises either when the invoice is issued or when payment is received, whichever is earlier. If the invoice is not issued on time, the liability is based on the date of service provision or payment receipt.

For contracts where payment includes an interest component,