Guidelines for Timely Disposal of GeM & Non-GeM Bills
Office of the Controller General of Defence Accounts (CGDA)
Executive Overview
The Ministry of Defence has issued urgent reminders regarding the mandatory timelines for processing and paying bills generated through the Government e-Marketplace (GeM) and other channels. These measures align with the "Aatmanirbhar Bharat" initiative to ensure prompt payments to vendors, particularly MSMEs.
Mandatory Timelines & Penalties
- Prescribed Timeline: All third-party and GeM bills must be processed within a mandated timeframe of 10 calendar days or 7 working days.
- Penal Interest: If payment is delayed beyond 10 days after the generation of the Consignee Receipt and Acceptance Certificate (CRAC), the buyer organization is liable to pay a penal interest of 1% per month.
- Interest Usage: This penal interest is not paid to the vendor but is deposited into a separate GeM account for educational and procurement purposes.
Operational Best Practices
- FIFO Method: All bills must be cleared strictly on a "First In First Out" (FIFO) basis according to their receipt date.
- Comprehensive Observations: All objections must be raised at the first instance to avoid returning bills multiple times. Returning a bill for a third time requires the personal approval of the JCDA/CDA.
- No Frivolous Returns: Offices are prohibited from returning bills for documents or bank details (like cancelled cheques or mandate forms) that are already available and digitally signed on the GeM portal.
- Daily Updates: UTR linking must be updated on a daily basis to ensure the timely closure of bill cycles.
- Advances: Medical and TA/DA advances should be audited and passed on the same day or the following day.
Educational Purpose Only: The information provided in this article is for general informational and educational purposes only.
Accuracy & Mistakes: While every effort has been made to ensure accuracy, human errors or omissions may occur.
No Liability: Under no circumstances shall the author or this website be held liable for any loss arising from the use of this information.
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