J&K Govt mandates GST-linked bank account for e-tendering transactions
Jammu, Jul 11: The Jammu and Kashmir Government has made it mandatory for all suppliers and contractors participating in e-tendering to disclose bank account numbers that are linked with their GST registration (GSTIN) at the time of bid submission.
The decision, issued through Circular No. 01 (Adm) FD of 2025 by the Finance Department on July 8, is aimed at strengthening transparency, ensuring traceability of financial transactions, and enforcing compliance with GST regulations.
The circular notes that under Section 51 of the CGST Act, 2017 and the J\&K GST Act, 2017, the government deducts tax at source—1% SGST and 1% CGST—from payments exceeding ₹2.5 lakh made to suppliers or contractors for taxable goods or services. Drawing and Disbursing Officers (DDOs) are required to file returns in Form GSTR-7 to monitor tax payments and compliance. Moreover, Rule 10A mandates registered taxpayers to furnish their bank account details after obtaining GST registration in Form GST REG-06.
The circular said that, however, it has come to the government's notice that the bank account details furnished by suppliers or contractors at the time of contract allotment are often not linked to their GSTIN. This disconnect has hampered effective monitoring of financial transactions and could lead to revenue loss for the state exchequer. To address this concern, the government has declared that all departments, organisations, and agencies must ensure that only the GST-linked bank account is used for all payments related to supplies and contracts.
The circular explicitly states that every participating supplier or contractor must mandatorily disclose the bank account number linked with their GSTIN when submitting bids. It further states that no payment shall be made by any government department or agency to any bank account other than the one verified as linked with the GST registered number of the successful bidder.
In line with this directive, all departments have been instructed to immediately update their tender documents and bid conditions to reflect this requirement. Furthermore, it has been clarified that payments to successful bidders shall be made strictly to the disclosed and verified GST-linked bank account.
