Jaipur, Rajasthan – In a significant move to curb corruption and irregularities in government construction projects, the Finance Department of the Rajasthan Government has issued new guidelines that will bring greater transparency to the tendering and billing process. According to the fresh circular issued by the Finance (Budget) Department, all construction departments must now display GST (Goods and Services Tax) separately in the Bill of Quantity (BOQ) using the IFMS 3.0 portal. This rule will be fully effective from April 1, 2026.
🔎 What’s the New Rule?
Until now, many contracts and government bills included GST in the basic cost, making it difficult to see the true value of work and the tax component. This lack of clarity was often exploited through corrupt practices. To change this, the government has mandated the following:
- GST-Exclusive BSR: Construction departments must prepare their BSR (Basic Schedule of Rates) without GST and upload it on the IFMS 3.0 system.
- Separate GST in BOQ: During the tender process, the generated BOQ will display the base cost and GST separately, improving visibility of the tax amount.
- Strict Monitoring at Payment Stage: When approving invoices, departments must continue to calculate and add GST at the current applicable rate as a separate element.
📉 Impact on Contractors & Ongoing Projects
- For Contractors: With clear separation of GST, contractors will have a better understanding of the actual cost and tax they need to account for when submitting bids.
- For Ongoing Work: Projects that were initiated, tendered, or bid before April 1, 2026 will continue under the previous system where BSR included GST, to avoid confusion. Contractors will, however, need to align their financial calculations with the new system for future work.
📊 Government’s Objective
The principal aim of this reform is to reduce fraud and improve public accountability by ensuring that tax components are transparent in public works. By mandating the use of IFMS 3.0 and separating GST in all tenders and bills, the state government expects to significantly reduce opportunities for manipulation of costs and misuse of public funds.
🛠️ Implementation & Enforcement
The Finance Department has sent the disciplinary order to the Governor, the Chief Minister, and the Chief Engineers of all departments. Departments have been instructed to contact IFMS technical support immediately if they face any issues implementing the new process. Officials have also been warned that non‑compliance will not be tolerated.
