PANAJI: Health Minister Vishajit Rane seems to have violated the circular issued by Finance Ministry on making the GST registration compulsary for contractors and suppliers.
By considering Arjun Life Science for ventilator order for 59 ventilators, the Goa Medical College has violated the Finance Ministry’s rule.
According to a circular of Spetember 20, 2018, All contractors and equipment suppliers which deal with government departments have to register on the Goods and Services Tax (GST) portal and file their returns to continue doing business with the state government, the state finance department has said in a notification.
Departments have been given 30 days to comply with the directive. The move, aimed at increasing tax collection, will prevent contractors and suppliers who are not GST compliant from participating in government tenders and work orders. However, this condition will not apply for orders whose value is less than Rs 50,000.
The finance ministry has issued instructions to all government departments, state-run corporations, public sector units and local governing bodies to ensure that all contractors and suppliers file their GST returns.
Authorities concerned in each department have to ensure that only those contractors and suppliers who have obtained an application reference number on the GST portal can participate in tenders for procurement of goods or services and receive payments from government departments. According to the finance ministry’s memorandum, even permissions for public events, exhibitions, will require the event organiser to obtain GST registration.