CBIC vide it’s Circular No. 212/2/2019-Service Tax dated May 21, 2019, which clarified that no service tax shall arise on the payments made by the Ministry of Road Transport and Highways (“MoRTH”) and the National Highways Authority of India (“NHAI”) to toll operators allowing actual users to access roads and bridges for free.
During demonetisation, MoRTH and NHAI had issued directions to the concessionaires operating tolls, to allow free access to the user up to December 1, 2016, and that toll charges for this period would be paid by NHAI. After authority investigation, founds that service by way of access to a road or a bridge on payment of toll charges fall under Negative list of services and is not taxable.
Complete Circular can be accssed at: http://www.a2ztaxcorp.com/wp-content/uploads/2019/05/no-service-tax-on-payments-by-nhai-to-toll-operators-allowing-free-access-to-roads-during-demonetization-period.pdf