Srinagar, July 11: The Jammu and Kashmir Government has made it mandatory for all suppliers and contractors participating in government tenders to disclose the bank account linked with their GSTIN (Goods and Services Tax Identification Number), in a move aimed at enhancing transparency and plugging revenue leakages.As per the circular a copy of which is in possession of Rising Kashmir, all departments, PSUs, autonomous bodies, and agencies have been directed to ensure that payments are released only to those bank accounts which are officially linked with the supplier’s or contractor’s GST registration.“The GST paid by the Government on goods and services received from various suppliers/contractors constitutes a significant source of revenue for the UT,” the circular reads. “However, it has come to the notice of the Government that, at the time of making payments, the bank account details provided by suppliers/contractors are often not linked with their GSTIN.”As per Section 51 of the CGST Act, 2017, and the J&K GST Act, 2017, the government deducts 2% tax (1% SGST and 1% CGST) from payments exceeding ₹2.5 lakh for taxable goods and services. DDOs (Drawing and Disbursing Officers) are also required to file monthly GSTR-7 returns to enable tracking of tax paid and returns filed by suppliers. However, the lack of alignment between bank accounts and GSTINs has been affecting this process.“This hampers effective monitoring and may lead to revenue loss to the State exchequer,” the communiqué adds.
To address this, the government has now made it compulsory for all departments to include the following clause in their E-Tendering process:“Every participating supplier/contractor must mandatorily disclose the bank account number linked with their GSTIN at the time of bid submission. No payments shall be released by the Government Department/Agency to any other bank account except the one linked with the GST registered number of the successful bidder.”Departments have been instructed to update their bid conditions and tender documents with immediate effect. “Payments to successful bidders shall be made strictly and only to the disclosed and verified GST-linked bank account,” the circular adds.All heads of departments, PSUs, autonomous bodies, and government agencies have been asked to ensure “strict adherence to these instructions in letter and spirit.”
