Time of supply for service supplied under HAM Contract would be the date of issuance of invoice or receipt of payment of annuity whichever is earlier
The Hon’ble Madras High Court in the case of KNR Srirangam Infra (P) Ltd. set aside the Impugned Assessment Order and remitted back the matter for reconsideration in light of the observations made in the Circular No. 221/15/2024-GST dated June 26, 2024 (“the Circular”) and held that the liability to pay tax would arise when invoice has been received or payment would be received under Hybrid Annuity Model (“HAM”) contract wherein the payment is received in installments for part compensation.