The Commercial Taxes Division, Finance Department hereby informs all Drawing and Disbursing (D&DOs) of Departments dealing in Work's Contract, on the following Standard Operating Procedure (SOPS) which need to be followed for unregistered contractors of GST.
    1. The payment for unregistered contractors, for all bills from running bills to final bill shall be made by D&DOs without inclusion of GST amount.
    2. The GST amount thus retained shall be booked in the relevant expenditure head of the project, with separate col' entry.
    3. All payments of unregistered contractors shall be made against "NOC' obtained by the contractors from, Commercial Tax Division, Finance Department.
    4. The NOC shall be issued, after D&DOs submit a statement of Payment Certificate for the relevant Bill under consideration for payment.
    5. The practice of some D&DO deducting TDS of whole project from mobilization advance, is irregular and D&DOs shall ensure 2% TDS, for GSTR 7 filing, on individuals Bills of Contractors.
    Format for 'Statement of Payment is enclosed and also available in Sikkim in www.sikkimtax.gov.in.