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Rule 84 - Transaction Classification | KartavyaDesk

GFR 2017

Original Rule Text

Classification should be recorded in all the bills and challans by Drawing Officers. Suitable classification shall be recorded by Drawing Officers on all bills drawn by them. Similarly, classification on challans crediting Government money into the Bank shall be indicated or recorded by Departmental Officers responsible for the collection of Government dues, etc. In cases of doubt regarding the Head under which a transaction should be accounted, the matter shall be referred to the Principal Accounts Officer of the Ministry/ Department concerned for clarification of the Ministry of Finance and the Controller General of Accounts, wherever necessary.

What This Means

Rule 84 of the General Financial Rules (GFR) 2017 is all about correctly classifying government transactions. Think of it like labeling items in a store – you need to put each transaction in the right category so the government knows where the money came from or where it went. This rule applies to all government employees who handle money, whether they're drawing money (like making payments) or depositing it (like collecting taxes).

Specifically, Drawing Officers (those authorized to withdraw funds) must write the correct classification on all bills they create. Similarly, Departmental Officers responsible for collecting government revenue must clearly indicate the classification on all challans (deposit slips) when depositing money into the bank. This ensures accurate accounting and helps the government track its finances effectively. If you're ever unsure about the correct classification, don't guess! Ask your Principal Accounts Officer for guidance, and they can even consult with the Ministry of Finance or the Controller General of Accounts if needed.

In essence, Rule 84 is about accountability and transparency in government finances. By correctly classifying transactions, we ensure that public funds are managed responsibly and that the government can make informed decisions about its spending and revenue.

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

Key Points

  • •Drawing Officers must record the correct classification on all bills.
  • •Departmental Officers collecting government dues must record the classification on challans.
  • •Accurate classification ensures proper accounting of government funds.
  • •If unsure about the correct classification, consult the Principal Accounts Officer.
  • •The Principal Accounts Officer can consult the Ministry of Finance or Controller General of Accounts for clarification.

Practical Example

Mr. Sharma, a Drawing Officer in the Ministry of Rural Development, needs to pay a contractor, M/s Construction Ltd., ₹5,00,000 for building a community hall. He must ensure that the bill clearly states the correct classification, such as 'Capital Outlay on Rural Development - Construction of Community Assets.' Similarly, Ms. Verma, a Departmental Officer in the Tax Department, collects ₹2,00,000 in Goods and Services Tax (GST). When depositing this amount into the government bank account using a challan, she must clearly indicate the classification as 'GST Revenue - Central GST.' If Mr. Sharma was unsure whether 'Construction of Community Assets' was the correct classification, he should consult his Principal Accounts Officer before making the payment.

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

Frequently Asked Questions

What happens if I incorrectly classify a transaction?▼
Incorrect classification can lead to misreporting of government finances, making it difficult to track spending and revenue. It can also lead to audit objections. It is crucial to rectify the error as soon as possible by informing the Principal Accounts Officer.
Where can I find a list of all the possible classifications?▼
The Principal Accounts Officer of your Ministry/Department will have access to the relevant classification codes and guidelines. You can also refer to the Chart of Accounts maintained by the Controller General of Accounts.
Does this rule apply to all types of government transactions?▼
Yes, Rule 84 applies to all types of government transactions involving the drawing or depositing of funds. This includes payments, receipts, refunds, and other financial activities.
What is a 'challan'?▼
A challan is a form used to deposit money into a government account at a bank. It contains details of the amount being deposited, the purpose of the deposit, and the relevant classification code.
Who is responsible if an incorrect classification is made?▼
The Drawing Officer or Departmental Officer who prepared the bill or challan is primarily responsible for ensuring the correct classification. However, supervisory officers also have a responsibility to review and verify the accuracy of classifications.

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

Test Your Knowledge

Question 1 of 3

According to Rule 84 of GFR 2017, who is responsible for recording the suitable classification on all bills drawn by them?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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