Photo Courtesy: nenow
Shillong: The Meghalaya government has ordered all state departments and agencies to improve tax compliance following reports of significant revenue losses. Authorities discovered that several government offices were procuring goods and services without the necessary authorization to deduct tax at source. This oversight allowed some contractors to receive payments while failing to remit their required tax dues to the state.
Under the new directive, departments must obtain GST registration immediately. Any contract or supply order exceeding Rs 2.5 lakh will now be subject to a 2 per cent tax deduction. Officials must upload these deduction details via the GSTR-7 return by the 10th day of the following month. For smaller transactions, departments must still report payment information to the Office of the Commissioner of Taxes using a standard format.
To further tighten oversight, the state now requires contractors and suppliers to present a valid Tax Clearance Certificate from the Superintendent of Taxes before securing new government work. This document proves that all previous tax obligations have been satisfied. The government order emphasizes accountability for these financial standards, stating that "officials may be held answerable for financial losses caused by non-compliance with these instructions."
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