19th April 2025, New Delhi: A major shift in toll collection across national highways is set to begin from May 1, 2025, as India transitions from the current FASTag system to a new GPS-based toll collection method. This move, announced by Union Road Transport and Highways Minister Nitin Gadkari, aims to streamline toll payments and eliminate physical toll plazas in the long run.
Under the new system, vehicles will be charged tolls based on the actual distance traveled on tolled roads, using GPS tracking technology. The toll amount will be automatically deducted from the vehicle owner’s linked account, making the process more efficient and transparent.
With the implementation of this system, the use of FASTag—which had been mandatory for toll payments in recent years—will gradually be phased out. Authorities believe this change will reduce traffic congestion at toll booths, curb revenue leakage, and enhance user convenience.
The government has been testing the GPS-based system in select corridors and is now preparing for a nationwide rollout. Vehicle owners are expected to receive further instructions soon regarding registration and activation of GPS-based toll features.
This technological upgrade marks a new era in India’s highway infrastructure, paving the way for smarter and more automated road travel experiences.