Verify GSTIN and GSTR-3B return authenticity before awarding contract and issuing payment: Govt

The Jammu and Kashmir Finance Department ordered Saturday that before awarding any contract or releasing payment to the contractor, the status of his (contractor’s) GSTIN and the authenticity of the GSTR-3B return submitted by him be verified using the Peridot App (available in the Playstore) or the State Taxes Department.

GSTIN is a unique 15-digit Goods and Services Tax Identification Number obtained by businesses after they register for GST.

Circular instructions were given to all Administrative Departments in this regard, directing their subordinate officers to adopt these standards.

“Moreover, the DD0s should check the latest status of the contractor using the information accessible on Peridot App or via the State Taxation Department. Payments to contractors who fail to meet their Statutory Obligations under the GST Taxes Code should be avoided,” it was further instructed.

The instructions were given when the Finance Department discovered that dealers or contractors whose GSTIN had been deleted or deactivated were applying for government bids using fraudulent or forged GST returns.

“Such conduct occurs because tender inviting departments do not cross-verify documents presented by the tenderer with the State Taxation Department,” the department observed with concern.

The General Sales Tax Act of 1962 required contractors to obtain NOC from the State Taxation Department before applying for a tender.

“This practise has been done away with, post adoption of GST Act, 2017. In order to ensure timely compliance of returns by contractors and DDOs, the State Taxes Department, in collaboration with NIC Jammu, recently developed an Online Web application titled “APNA TDS” portal, which aids in identifying payments made to work contract service providers by DDOs via the JK Paysys portal,” according to the instructions.

Before awarding any work contract, the status of the contractor’s GSTIN and the authenticity of the GSTR-3B return submitted by the contractor should be verified using the Peridot App (available in the Playstore) or the State Taxes Department.

“Furthermore, before making payment to the contractor, DDOs can verify the latest status of the contractor’s GSTIN by using the information available in the Peridot App or through the State Taxation Department to ensure that the contractor has not defaulted in GST tax compliance,” the department ordered.