Para 2.16.19 — When Ministries or Departments procure goods and s

2.16.19 CHECK OF BILLS FOR PROCUREMENT OF GOODS AND SERVICES 2.16.19.1 The procurement of Goods & Services by Ministry/Department are mandatory for Goods & Services available on GeM as per provisions contained in GFR-2017 and instructions issued by Ministry of Finance/Cabinet Secretariat from time to time. If the Goods & Services are not available on GeM, then non-availability certificate from the GeM as per OM issued by Procurement Policy Division, Department of Expenditure may be enclosed along with bill. Further, if procuring entity/authority wants to procure Goods & Services available on GeM from open market without following Rule 149 of GFR-2017 as amended from time to time, then approval of Secretary in consultation with FA is required based on recommendation of Standing Committee on GeM. The following checks are prescribed in respect of bills for purchase of stores:-

(i) that there is provision of funds under correct object of account as per amendment to Rule 8 of DFPR authorised by the competent authority;

(ii) that there exists financial sanction either special or general accorded by the competent authorityauthorising expenditure for procurement of goods and services communicated to PAO in terms of Rule 29 of GFR, 2017;

(iii) that the purchases are made economically and in accordance with the rules and orders made bycompetent authority;

(iv) that the rates mentioned in the bill agree with those shown in the contract/purchase/job orders;

(v) that certificates of quality and quantity are furnished;

(vi) that the purchases have not been split up so as to avoid the necessity of obtaining the sanction of higher authority;

(vii) that the amount of advance payment made to Supplier/Service provider should not exceed as stipulated in Rule 172 (1) of GFR,2017 and if it exceeds concurrence/ approval of FA of Ministry/Department is required. Further, adequate safeguards in the form of Bank Guarantee, etc. are obtained as required in Rule 172

(l) of GFR,2017.

(viii) that manpower and other service provider claims are supported with relevant papers with reference to the contract with the service provider, for example, copy of ESIC & EPFO challan as per the contract, invoice/bills,

(ix) that vendor name is matched with account holder in GeM bills,

(x) that TDS under section l94J of IT is deducted on account of professional/Technical Services.

(xi) that stock entry of items is mentioned as per Rule 208

(iii) of GFR-2017.

(xii) that Liquidated Damages (LD) for delay in delivery of Goods is deducted from the bill in GeM.

(xiii) that for all contracts placed through GeM, the payment through PFMS to all sellers/service providers must be released online only against e-bill generated on GeM. No offline payment should be made in such cases to avoid double payment [para 7 A (XX) of Procurement Policy Division, Department of Expenditure OM dated 23.01. 2020.

(xiv) that a Certificate of Competent Authority should be recorded in the bill as per rule 154 of GFR, 2017 for goods purchased/Service procured without quotation. Similarly, certificate of Local Purchase Committee (LPC) should be recorded in the bill as Rule 155 of GFR-2017.

Note:

(a) The scrutiny mentioned at (i), (ii),

(iv) &

(v) above is to be exercised at the time of precheck or post-check with reference to sanctions and supply orders required to be communicated to the PAOs. .

(b) The checks at

(iii) and

(vi) above are to be exercised at the time of internal audit of records of the departmental authorities.

2.16.19.2 According to Chapter 7 of GFR,2017, the responsibility of maintaining numerical and value accounts of stores and undertaking the physical verification of stores is that of the departmentalofficers. The rules prohibit physical verification of stores by persons not conversant with the classification, nomenclature and technique of verification of the particular classes of stores. Accordingly, the departmental accounting organisation (including internal Audit) is not required to maintain the numerical and value accounts of stores or to conduct physical verification of stores and stock. During internal check it should, however, be ensured that a certificate of physical verification is recorded periodically by the responsible authority, that the system of verification adopted is adequate and proper, that the staff employed for physical verification are independent of those responsible for the physical custody of the stores or for keeping accounts thereof and that excesses and shortages found on physical verification are properly investigated and adjusted or written off under orders of competent authority.

2.16.19.3 Where a 'period' or 'value' account is maintained it will be the duty of the Pay and Accounts Officer to see, during internal check that-

(i) the stores are priced with reasonable accuracy and the rates are reviewed from time to time, are correlated with market price and revised, wherever necessary.

(ii) the value accounts tally with the accounts of works and of departments connected with the stores transactions, that the total of the value account tallies with the outstanding amount in the general accounts and that the numerical balance of stock materials is reconcilable with the total of 'value' balances in the accounts at the rates applicable to various classes of stores and

(iii) steps are taken for the adjustment of profits or losses due to revaluation, stock taking or other causes.

2.16.19.4 Procurement through GeM and processing of bills in GeM:

(i) Ministry/Department would issue a sanction order for placing a supply order on the GeM portal. Once the supply order is placed on GeM, the required amount in the relevant Budget heads gets blocked in PFMS. This would be contingent on sufficient budget being available for the DDO.

(ii) After the receipt of order, the bill is generated in GeM portal. DDO who acts as a human bridge login on GeM portal would make necessary deductions related to Liquidated Damages, delay in services etc. and would push the bill in the PFMS. The bill would be examined in the Pay and Accounts Office at three levels (DH, AAO and Pay and Accounts Officer) as is done for other bills and in case the Pay and Accounts Officer is satisfied with the bill would pass it for payment.’

(iii) In case Pay and Accounts Officer has any observation, he would return the bill to DDO for clarification/amendment. The revised bill submitted to the Pay and Accounts Officer would be examined again and if it is order it would be passed by the Pay and Accounts Officer and would put in his digital signature for payment.

(iv) The manual bill would also accompany to the PAO as is being done for other types of payments along with the bill generated and sent in the system, if DDO does not apply DSC.

Note: The key applicable checks for payment of Goods and Services are indicated in APPENDIX 2.4.

2.16.20 GENERAL PROVIDENT FUND, NPS & RETIREMENT BENEFITS BILLS All bills relating to advances and withdrawals from GPF and bills relating to payment of retirement benefits should be checked with reference to rules relating to the Fund and Pensionary benefits. It is emphasised that necessary entries should be invariably made in Service Book, terminal benefit register, and Final payment register in the case of GPF, in all cases of payment of retirement benefits or final payment cases. The following points are to be kept in mind:

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1GeM procurement is mandatory for goods and services available on the platform (GFR-2017)
• 2Non-availability certificate from GeM is required if items are procured outside GeM
• 3PAO must verify compliance with procurement rules before passing bills
• 4Proper sanction must exist and be enclosed with procurement bills
• 5This ensures transparency, competitive pricing, and accountability in government procurement

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Cross References

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.