Governments don't always pay with money. Sometimes, they pay with rights. That proposition lies at the heart of a GST dispute before the Supreme Court. Can NHAI's grant of a right to collect toll be treated as a non-monetary consideration for constructing a highway?
This answer matters beyond roads. India increasingly develops highways, airports, ports, mines and other public assets through concessions. If gov-granted earning rights can later be characterised as payment for another taxable supply, developers may have to price GST into bids, financing assumptions and expected returns. This can transform project bankability across the PPP economy.
