Para 9.5.2 — GOODS_MANUAL

2. If applicable under relevant tax laws and rules, the Procuring Entity shall deduct required taxes on account of GST Reverse Charge Mechanism; Tax Deducted at Source (TDS), and Tax Collected at Source (TCS) relating to Income Tax, labour cess, royalty etc. from all payments due to the Contractor and deposit these to respective authorities as per the existing law in force during the currency of the contract. In the case of foreign bidders, Corporate tax shall be deducted at source from each invoice as per instructions/orders of the Government of India, Indian Income Tax Authority.

3. Goods and Services Tax: GST shall be paid as per the rate at which it is liable to be assessed or has been assessed, provided the transaction of the sale is legally liable to such taxes and is payable as per the terms of the contract subject to the following conditions:

a) The payment of GST and GST Cess to the contractor shall be made only on the latter submitting a GST compliant Bill/ invoice indicating the appropriate HSN code and applicable GST rate thereon duly supported with documentary evidence as per the provision of relevant GST Act and the Rules made there under. The delivery shall be shown as being made in the name, location/ state, and GSTIN of the consignee only; the location of the procurement office of the procuring entity has no bearing on the invoicing.

b) The Procuring Entity shall not pay a higher GST rate if leviable due to any misclassification of the HSN number or incorrect GST rate quoted mistakenly by the Contractor. Wherever the contractor invoices the Goods at GST rate or HSN number, which is different from that incorporated in the contract, payment shall be made as per applicable GST rate, or the GST rates incorporated in the contract/ invoice – whichever is lower. However, the Procuring Entity shall not be responsible for the contractor's tax payment or duty under a misapprehension of the law. The Contractor shall be required to adjust his basic price to the extent required by a higher tax rate billed as per invoice to match the all-inclusive price mentioned in the contract.

c) In case of undue profiteering by the contractor relating to GST tax, the Procuring Entity shall treat it as a violation of the Code of Integrity in the contract and avail any or all punitive actions thereunder, in addition to recovery and action by the GST authorities under the Act.

d) The contractor should issue receipt vouchers immediately upon receipt of all types of payments along with tax invoices after adjusting advance payments, if any, as per contractual terms and GST provisions.

9.5.2 Payment of Taxes and Duties 1. The contractor shall be entirely responsible for all taxes, duties, fees, levies, etc., incurred until delivery of the Goods to the Procuring Entity.

e) Liquidated damages (refer to para 9.3.9 above for its quantum) or any other reduction (Price Variation or Exchange Rate variation, etc.) should be shown as deductions on the invoice value by the contractor. Similarly, any increase due to any variation should be shown as added to the invoice value. The Contractor shall be required to adjust his basic price to the extent required to adjust the applicable GST rate within the nett balance invoice value. f) While claiming reimbursement of duties, taxes, etc. (like GST) from the Procuring Entity, as and if permitted under the contract, the contractor shall also certify that in case it gets any refund out of such taxes and duties from the concerned authorities later, it (the contractor) shall refund to the Procuring Entity, the Procuring Entity’s share out of such refund received by the contractor. The Contractor shall also refund the appropriate amount to the Procuring Entity immediately upon receiving the same from the concerned authorities. g) All necessary adjustment vouchers, such as Credit Notes/ Debit Notes for any short/ excess supplies or revision in prices or any other reason under the contract, shall be submitted to the Procuring Entity in compliance with GST provisions.

4. Customs Duty: Regarding Customs Duty, the contractor shall specify the rate and the total amount of customs duty payable regarding imported goods duly indicating the corresponding Indian Tariff Classification (ITC-HS) applicable for the Goods in question.

5. For Procuring Entities eligible for availing Input Tax Credit: a) Contractors shall provide necessary documents/ compliances / invoices to enable Procuring Entity (for commercially run entities) to avail of Input tax credit benefits under GST legislation. b) The successful bidders should upload the details of the invoices raised on Procuring Entity on the GST Network within the prescribed time limits and undertake to adhere to all other compliances under the GST regulations/ legislations. c) In case any credit, refund or other benefit is denied or delayed to the Procuring Entity due to any non-compliance of GST legislation by the bidder, such as failure to upload the details of the supply on the GST portal, failure to pay GST to the Government or due to non-furnishing or furnishing of incorrect or incomplete documents/ information by the bidder, the bidder would reimburse the loss to the Procuring Entity or it shall recover may recover the same, but not limited to, the tax loss, interest and penalty.