Rule 18 — General Financial Rules 2017 (amended July 2024) - Rule 18
Original Rule Text
Rule 18 Remission of Revenue. A claim to revenue shall not be remitted or abandoned save with the sanction of the competent authority.
What This Means
This rule is about how government departments handle money that is owed to them. Simply put, if someone owes money to the government – whether it's a fee, a fine, a tax, or rent for government property – that money must generally be collected.
You, as a government officer, cannot simply decide to forgive that debt or stop trying to collect it. You are not allowed to "remit" (forgive) or "abandon" (give up on collecting) any revenue that is due to the government on your own initiative.
If there's a situation where you believe the government should not collect a particular sum of money, or if it needs to be waived for some reason, you must get official permission. This permission has to come from the "competent authority," which is the specific officer or body designated by rules or orders to make such decisions. Without their explicit sanction, all revenue claims must be pursued.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1All money owed to the government, known as "revenue," must generally be collected.
- 2Government officers cannot independently decide to forgive or stop collecting any government revenue.
- 3Any decision to waive or abandon a claim to government revenue requires explicit approval.
- 4The approval must come from the "competent authority," which is the officially designated officer or body for such decisions.
- 5This rule ensures financial accountability and prevents arbitrary decisions regarding government funds.
Practical Example
Imagine Mr. Sharma, an Executive Engineer in the Public Works Department. His department had awarded a contract to XYZ Construction for building a road. Due to a delay in completing the project, XYZ Construction incurred a penalty of Rs. 50,000 as per the contract terms. XYZ Construction approaches Mr. Sharma, explaining that the delay was due to unforeseen heavy rains and requests that the penalty be waived.
Under Rule 18, Mr. Sharma cannot simply agree to waive the Rs. 50,000 penalty. This penalty is a "claim to revenue" for the government. If Mr. Sharma believes there's a valid reason to consider the waiver, he must prepare a detailed proposal explaining the circumstances and forward it to his "competent authority," which in this case might be the Chief Engineer, Ms. Gupta, or even a higher financial authority, depending on the department's delegation of powers. Only if Ms. Gupta (or the designated authority) reviews the case and formally sanctions the remission can the penalty be waived. Otherwise, Mr. Sharma is obligated to pursue the collection of the Rs. 50,000.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.