Srinagar, Mar 07: In a move that underscores concerns within the administration over irregular procurement practices in public works, the Jammu and Kashmir government has directed all Drawing and Disbursing Officers to withhold payments to contractors unless valid tax invoices and supporting documents are produced for materials used in executing government works.
In a circular issued to government departments, authorities said it had come to the notice of the government that, in several cases, contractors executing works involving the supply of goods and services were procuring raw materials and consumables in ways that did not conform to the scope and specifications laid down in the Bill of Quantities (BOQ) of the awarded works.
Officials said some procurements were allegedly being carried out without proper documentation or through undisclosed channels, raising the possibility of violations of statutory provisions and potential loss of revenue to the government exchequer.
The circular directs DDOs, the officials responsible for processing and releasing payments, to mandatorily obtain copies of valid tax invoices and related documents while clearing contractors’ bills.
According to the instructions, officers must verify that the goods and services used in a project match the scope, specifications and terms of the contract, and ensure that invoices comply with Goods and Services Tax (GST) norms, including proper mention of GSTIN numbers, invoice numbers and dates, description of goods or services, taxable value, tax rates and tax amounts.
The government has also directed that copies of such invoices be verified and retained on record, along with contractors’ bills for audit and verification purposes.
Significantly, the circular makes it clear that no payment should be released unless these requirements are fully complied with, signalling a tightening of financial scrutiny in the execution of works contracts.
The move comes amid growing concerns in official circles about financial discipline and transparency in government-funded works, particularly in projects involving the supply of construction materials and services, where verification of procurement practices often becomes difficult at the payment stage.
Officials indicated that the new instructions are intended to ensure strict compliance with statutory provisions, including those under GST laws, and to plug loopholes that could otherwise lead to financial irregularities.
The directions have been made effective immediately, and all concerned officers have been asked to ensure compliance in “letter and spirit.”
