GST levy on annuity payments of BOT-HAM projects to have limited impact on project cash flows: ICRA

GST levy on annuity payments of BOT-HAM projects will have limited impact on project cash flows, domestic rating agency Icra on Wednesday.

“With NHAI reimbursing additional tax burden on account of GST levy on annuity payments for BOT (build-operate-transfer)-HAM (hybrid annuity model) projects, there would be no impact on the cashflows, project debt coverage and return metrics of the concessionaire,” Vinay Kumar G, assistant vice-president and sector head (corporate ratings) of ICRA, said in a statement.