Para 6.7 — GOODS_MANUAL

6.8. Statutory Taxes/ Duties/ Levies 6.8.1 Goods and Services Tax (GST) 1. GST Registration Status and GSTIN (15-digit registration number):

2. To work out the variation due to changes (if any) in the exchange rate(s), the base date for this purpose will be the deadline of bid submission (or seven days prior to it - the purchase organisation is to adopt a suitable date). The variation may be allowed between the above base date and the date of remittance to the foreign principal/mid-point of manufacture of the foreign component (the purchase organization is to choose the appropriate date). The applicable exchange rates as above will be according to the “Bill currency selling” exchange rate as quoted by a source as specified (if not specified, authorised exchange bankers approved by RBI) in the tender document on the dates in question. No variation in price in this regard will be allowed if the variation in the rate of exchange remains within the limit of plus/minus 2.5% per cent (or any other percentage fixed by Procuring Entity). ERV shall be applicable only for components used to manufacture supplied Goods imported after the contract date.

3. Any increase or decrease in the landed price of import content (including customs duty) by reason of the variation in the rate of exchange shall be charged to the buyer's account during the original delivery period. In case the delivery period is revised/extended, ERV will not be admissible if this is due to the supplier’s default; however, ERV benefits arising out of downward trends should be passed on to the Procuring Entity.

4. Documents for Claiming ERV a) A bill of ERV claim enclosing the working sheet; b) Banker’s certificate/debit advice detailing the foreign exchange paid and exchange rate; c) Copies of the import order placed on the supplier d) Supplier’s invoice for the relevant import order.

a) All the bidders/ Bidders should ensure that they are GST compliant and that their quoted tax structure/ rates are as per the GST Act/ Rules.

6.7. Exchange Rate Variation (ERV) 1. In case of domestic tender contracts involving substantial import content (say >25% of the total price) and having a long delivery period (exceeding one year from the date of the contract), an appropriate Exchange Rate Variation (ERV) clause may be formulated by the procuring entity in consultation with its associated/ integrated Finance, as needed, and incorporated in the tender enquiry document. In that clause, the bidders are to be asked to indicate import content and the currency (ies) used for calculating the value of import content

(s) in their total quoted price. The bidders may be asked to indicate the base exchange rate for each such foreign currency used for converting the foreign exchange content into Indian Rupees, as well as the extent of foreign exchange rate variation (ERV) risk they are willing to bear.

b) Bidder should be registered under GST and furnish their GSTIN number and GST Registration Certificate in their offer unless they are specifically exempted from registration under a specific notification/ circular/ section/ rule issued by statutory authorities. c) If the bidder has multiple business verticals in a state and has separate registrations for each vertical, the GSTIN of each vertical concerned with the supply and service involved, as per the scope of the Schedule of Requirements and Price Schedule, shall be quoted. d) If the supply/ service is from multiple states, the bidder should mention GST registration numbers for each state separately. e) Composition scheme: If the Bidder has opted for a composition levy under Section 10 of CGST, he should declare the fact while bidding along with GSTIN and GST registration certificate. f) Exemption from Registration: If a bidder is not liable to take GST registration, i.e., having turnover below threshold, he shall submit undertaking/ indemnification against tax liability. The bidder claiming exemption in this respect shall submit a valid certificate from a practising Chartered Accountant (CA)/ Cost Accountant with the Unique Document Identification Number (DIN) to the effect that the bidder fulfils all conditions prescribed in notification exempting him from registration. Such bidder/ dealer shall not charge any GST and/ or GST Cess in the bill/ invoice. In such case, applicable GST shall be deposited under Reverse Charge Mechanism (RCM) or otherwise as per GST Act by the Procuring Entity directly to concerned authorities. Bidder should note that his offer would be loaded with the payable GST under the RCM. Further, the bidder should notify and submit to the Procuring Entity within 15 days of becoming liable for registration under GST. g) Bidders must also consider the benefits of input tax credit under the GST legislation, as amended from time to time, on Input goods/Capital goods / Input Services while quoting the prices. h) In their bids, the bidders shall indicate the details of their GST Jurisdictional Assessing Officers (Designation, address, email ID). In case of a contract award, the Purchaser shall immediately forward a copy of the LOA/Purchase Order to the Jurisdictional Assessing Officer mentioned in the bidder’s bid. i) The Procuring Entity's state-wise GSTINs shall be indicated in Tender Documents.

2. HSN Code and GST Rate: a) If provided in the Tender Document, the HSN (Harmonized System of Nomenclature) code for the goods is only indicative. The bidder shall be responsible for ensuring that they quote the correct HSN Code and corresponding GST rate for the goods they offer. b) As per the GST Act, the bid and contract must show the GST Tax Rates (and GST Cess if applicable) and GST Amount explicitly and separately from the bid/ contract price (exclusive of GST). So, if a Bidder asks for GST (and GST Cess if applicable) to be paid extra, the rate and nature of such applicable taxes should be shown separately. Bidders should quote 'GST' if payable extra on the total basic rate of each cost element and quote GST in ‘%' inclusive of cess. c) If the price is stated to include GST, the bidder must declare the current GST rate (and GST Cess, as applicable) included in the price.

5. Applicability to Imported Goods/ Services: Following the implementation of GST, the import of commodities shall not be subject to erstwhile applicable duties like safeguard duty, education cess, basic customs duty, antidumping duty, etc. All these supplementary customs duties are subsumed under GST. If imported into India, the supply of commodities, services, or both shall be considered as supply under inter-state commerce/ trade and shall attract integrated tax (IGST). The IGST rate and GST cess shall be applicable on the ‘Customs Assessable Value’ plus the ‘Basic Customs duty applicable thereon.’

Chapter 6: Forms of Securities, Prices, Payment Terms and Price Variations d) If GST, other taxes, or duties are not specified, or the column is left blank in the price schedule, it shall be presumed that no such tax/ levy is applicable or payable by the Procuring Entity. No Statutory Variation in GST shall be paid in such a case.

3. Refund from Supplier: Sometimes, the supplier, after claiming and receiving reimbursements for GST, from the purchaser, applies to the concerned authorities for refunds, on genuine grounds, of certain portions of such duties and taxes paid by it and receives the allowable refunds. Such refunds contain the purchaser's share also (out of the payments already made by the purchaser to that supplier). The tender enquiry document and the contract are to contain suitable provisions for obtaining such refunds from the supplier.

4. Statutory Duties/ Taxes/ Levies that are to be borne by the bidder: Following Statutory Duties/ Taxes/ Levies are to be entirely borne by the bidder, including any statutory variations thereon and the Procuring Entity would not be responsible for these:

a) Personal and Corporate Tax: Bidder shall bear all Personal/ Corporate taxes imposed on owners/ company/ Joint Venture/Subcontractors or their employees. b) Taxes on Sub-Contractors, Vendors: Bidder shall bear all taxes, including GST, as may be imposed on Contractor or supply-chain (sub-Contractors, Vendors, etc.). c) Duties/ Taxes on Raw Materials: The Procuring Entity is not liable for any claim from the contractor on account of fresh imposition and/ or increase (including statutory increase) of GST, customs duty, or other duties on raw materials and/ or components used directly in the manufacture of the contracted Goods taking place during the pendency of the contract unless such liability is expressly agreed to in terms of the contract.