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Para 9.5.3 - Supplier Payments | KartavyaDesk

Goods Manual

Original Rule Text

9.5.4 Passing of Supplier’s Bills 1. After the GRIR is issued, the invoice is received from the supplier, supported by relevant documents evidencing the award of purchase orders/contracts and receipt of materials/services. Based on contractual terms where payments are made based on proof of dispatch against a purchase order, bills shall be passed and accounted for based on the GRIR of approved materials. The invoice submitted by the supplier shall be verified and signed by the indenting officer, and the pay order form or any other relevant forms will be prepared by the procuring entity and signed by an officer authorised to sign pay orders. The procuring entity shall handle all correspondence with the supplier. 2. The documents needed from the supplier for the release of payment are to be clearly specified in the contract. The paying authority also verifies the documents received from the supplier with corresponding stipulations made in the contract before releasing the payment. 3. While claiming the payment, the supplier must also certify on the bill that the payment being claimed is strictly in terms of the contract and that all the obligations on his part for claiming this payment have been fulfilled as required under the contract. There should also be a suitable provision for verification of the authenticity of the person signing the invoice and so on to claim the payment. 4. Deduction of applicable taxes at source from payments to suppliers will be made as per the existing law in force during the currency of the contract. 5. Electronic Bill (e-Bill) processing system was announced in Union Budget 2022-23, as part of ‘Ease of Doing Business and Digital India eco-system’ to bring broader transparency and expedite the process of payments. It will enhance transparency, efficiency, and faceless-paperless payment system. Suppliers and contractors shall submit their bills electronically through the e-Bill portal, wherever such facilities are available. Concerned authorities verify these bills for discrepancies, authenticity, and adherence to rules. Once verified, the bills shall be approved for payment. The approved bills are integrated with the electronic payment systems. Funds are allocated from the relevant budget heads. The system generates payment orders. The e-Bill system allows real-time on-line tracking of bill processing by Suppliers.

What This Means

Para 9.5.3 of the Manual for Procurement of Goods, 2017, outlines the process for paying suppliers after goods or services have been received. It ensures that suppliers are paid correctly and on time, while also protecting the government's interests. This rule applies to all government departments and organizations involved in procuring goods and services and directly affects suppliers who do business with the government. It emphasizes verification, proper documentation, and adherence to contractual terms before payments are released.

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

Key Points

  • •Payment is based on the Goods Receipt and Inspection Report (GRIR) and the supplier's invoice.
  • •The invoice must be verified and signed by the indenting officer.
  • •Suppliers must certify that the payment claimed is strictly in accordance with the contract and all obligations are fulfilled.
  • •Applicable taxes are deducted at source as per existing laws.
  • •The e-Bill processing system promotes transparency and faster payments.

Practical Example

The Ministry of Electronics and Information Technology (MeitY) procured 100 laptops from 'Tech Solutions Pvt. Ltd.' for Rs. 50,00,000. After receiving the laptops, the GRIR was issued by the designated officer. Tech Solutions submitted an invoice for the agreed amount, along with supporting documents like the purchase order and delivery challan. Mr. Sharma, the indenting officer at MeitY, verified the invoice against the GRIR and the purchase order. Tech Solutions also provided a certificate stating that the payment claimed was as per the contract. After verifying all documents and deducting applicable taxes (TDS), MeitY processed the payment through the e-Bill system, ensuring transparency and timely payment to Tech Solutions.

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

Frequently Asked Questions

What is a GRIR, and why is it important for payment processing?▼
GRIR stands for Goods Receipt and Inspection Report. It's a document confirming that the goods or services have been received in satisfactory condition. It's crucial because payment is based on this report, ensuring that the government only pays for what it has received and approved.
What documents are typically required from the supplier for payment?▼
Typically, the supplier needs to submit the invoice, a copy of the purchase order/contract, delivery challan, and any other documents specified in the contract. They also need to provide a certificate stating that the payment claimed is strictly in accordance with the contract.
What is the e-Bill system, and how does it benefit suppliers?▼
The e-Bill system is an electronic bill processing system designed to bring transparency and expedite payments. It allows suppliers to submit bills electronically, track their processing status online, and receive payments faster, reducing delays and paperwork.
Who is responsible for verifying the authenticity of the supplier's invoice?▼
The indenting officer is responsible for verifying the authenticity of the supplier's invoice against the GRIR, purchase order, and other relevant documents. The paying authority also verifies the documents against the contract stipulations.
What happens if there are discrepancies between the invoice and the GRIR?▼
If there are discrepancies, the payment process is halted until the discrepancies are resolved. The indenting officer will need to investigate the matter, consult with the supplier, and make necessary corrections to the GRIR or invoice before payment can be processed.

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 Para 9.5.3 of the Manual for Procurement of Goods, 2017, what document primarily triggers the payment process to a supplier after goods are received?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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