The Supreme Court of India announced it will review whether goods and services tax (GST) can be levied on companies for payments made to municipal bodies, specifically regarding road repair and restoration work after laying electricity distribution lines. This decision comes after an appeal from the GST department concerning payments made by Torrent Power to the Ahmedabad Municipal Corporation (AMC). In September, the Gujarat High Court ruled that such reimbursements are not taxable services, highlighting that it is mandatory for distribution licensees to compensate for damages incurred during road work. The High Court maintained that the road repair function falls under the municipality's sovereign duties and that the reimbursement does not constitute a supply under the Central Goods and Services Tax Act of 2017. The Supreme Court's examination of this issue could have significant ramifications for how similar transactions are treated under GST in the future.