B. In addition, under Article 23 of the agreement, the dealer receives payment in 5 steps of a rate equal to 8% (8 percent) of the price indexbid project costs like: 4. Some important clauses of the concession agreement with NHAI For HAM projects, the maturity dates of Annuity`s payments are clearly identifiable by the concession agreement which, as explained above, is on a semi-annual basis for 15-20 years from the date of receipt, which is why invoices must be returned to the essentials. Under the new rules, the first tranche of the down payment will be released after 5% of the progress made in construction work and the second after 10%. Similarly, the last instalment is paid after 90% of the physical progress has been made. The measure will help dealers better meet their working capital needs and should also provide lenders with more comfort in the event of termination. In accordance with Article 23 of the agreement, the remaining clearance costs are payable and payable during the operating period, in accordance with item 23 .6.2. Rajeshwar Burla of ICRA said that “the recent changes in the MCA with a deferral to MCLR of earlier bank interest rates for the calculation of interest on pensions is a very positive development. Interest rates on the annuities of HAM projects are considerable and amount to about 45% of total inflows during the concession period.
So far, the low bank interest rate has reduced total inflows for a HAM project. The second issue was the deferral of interest rates. The transfer of reduced interest rates was done with a delay in the loan of the project. This is also reflected in the growing gap between the weighted average credit rate and the RBI bank interest rate for the current year. On the basis of the above decision, entry 23A was introduced in the 12/2017-CTR notification of 28.06.2017. As of 13.10.2017, the annuity share of HAM projects was exempt from the GST tax. From 1.07.2017 to 12.10.2017, these projects were certainly taxable. As this exemption is part of a notification, the Commission reserves the right to waive this exemption at any time after its election.
With respect to the separate interpretation of the provisions of paragraphs 2 (33), 13 and 31 of the CGST Act, it is clear that the VPS is legally required to charge more than 8% of the adjusted supply costs for each construction brick, regardless of the fact that the physical level of construction is much higher.