HIRT HNOIR Government of India

t iarcy Ministry of Railways

tad ats (Railway Board) G2 "A 2023 INDIA

No. 2022/RS(G)/779/8(E3391974) New DelhiDated: 03.04.2023

The General Managers, AllIndian Railways/PUs, NF(C), CORE

DG RDSO/Lucknow, NAIRIVadodara,
PCAO DMWIPatiala, COFMOW
CAO WPO/Patna, RWP/Bela

Sub: Joint Procedure Order for Online BillI Submissionand Payment to TPIAgencies
Ret: () Railway Board's letter No.2022/RS(G)/779/8 dated 04.01.2023
(i) Railway Board's leter No.2023/ACI/46/1 dated 03.02.2023
(ii) Railway Board's letter No. 2016/AC-IVO1/06/CRIS dated 22,02.2023
(iv) Railway Board's letter No. 2022/RS(G)/779/16 dated 22.02:2023

1. Background:
1.1. Western Railway was assigned the responsibility for finalizing engagement of Third
Party Inspection (TPI) Agencies for (i) inspection of materials procured by Indian Railways
i.e. Product Inspection, and, (i) Process Inspection for the entire lndian Railways.
1.2. Policy guidelines for operationalization of engagement of Third-Party Inspection
(TPI) Agencies have been issued under Railway Board's letter n0. 2022/RS(G)/779/8 dated
04.01.2023.
1.3. This Joint Procedure Order is being issued for laying down guidelines for enabling
centralised payment to the TPIAgencies by Western Railway through an end-to-end digital
process, as envisaged in the bidding documents for Engagement of TPIAgencies.
2. Capturing the data at demand stage, issue of Purchase Order &assignment of TPI
Agency for inspection:
2.1. Purchase Orders shall be issued through IMMS and the TPI Agency shall be
automaticaly selected by the System through auto assignment algorithm developed on
IREPS by CRIS, maintaining slab wise distribution among the TPI Agencies as mandated
under RB circular No. 2022/RS(G)/779/8 dated 04.01.2023.
2.2. The Purchase order shall continue to capture data on demand details, consignee
details, quantity, allocation, delivery period and details of TPI Agency, as usual.
 2.3. Besides the above information, in terms of RB letter No.2023/ACI/46/1 dated
03.02.2023 and 2016/AC-IWO1/06/CRIS dated 22.02.2023, Allocation Head, Accrual
AccountingCode and GST ITC Flag shall also be captured in database for alldemands so
that this data can flow to the Purchase Order stage and subsequent stages.
2.4. Further, for Non-Stock items to be booked under demand no. 16, UWID Code of the
chargeable work against allocations/ source codes specfied by Railway Board in letter No.
2023/ACIV46/1 dated 03.02.2023, as amended from time to time, shallbe captured at demand
stage itself as a data field.

2.5. The data, as brought out in para 2.3 and 2.4 above, shallbe captured at demand stage
itself for procurement cases in which tenders are yet to be published. In cases, where tenders
are already published, existing system may continue. Please refer Railway Board's letter no.
2022/RS(G)/779/16 dated 22.02.2023
2.6. CRIS shall make necessary provision in the System to dis-allow tender
publishing in the absence of these details. CRIS shallmake necessary changes in IREPS,
IMMS, UDM and IPAS, as may be required, for putting in suitable checks to ensure the above
scheme. Please refer Railway Board's letter no. 2022/RS(G)/779/16 dated 22.02.2023

3. Inspection Acceptance/Rejection/Cal-cancellation Certificates:

3.1. Inspection certificates format, shall invariably include Unique Inspection certificate
number, PO number, PO date, P0Sr. No., PO modifications, Name of Vendor, Date of
inspection call,Actual Date of inspection, ltem description, Earlier quantity passed/rejected
against same PO, Consignee name, Procuring entity name, Total order quantity, Quantity
offered in current instance, Quantity passed/rejected in current instance, Quantity due and
other Inspection related details (Name of TPI Agency, date of inspection cal/
visits/outcomelvalidity etc.)
3.2. These certificates shall be generated online through System. Forms for ll these
certificates shallbe created in System by CRIS to auto populate data available in the System
such as P0 number, PO Sr. No., Railway/PU, Consignee, Total PO Quantity, and Quantity
offered for inspection etc. and allowing TPI Agency to fill up details that cannot be captured
by System like Quantity accepted, Rejected, etc. These certificates shallbe digitally signed
by competent authority of TPI Agency.

3.3. CRIS shall run a validation check on Consignee Master in IREPS/IMMS to confirm that
each unique Consignee code is mapped with at least the following attributes:
3.3.1. Consignee Name
3.3.2. Consignee Department
3.3.3. Consignee Address including location and State (to pick GSTIN)
3.3.4. Railway/PU
3.4. order to ensure that Consignee Master of IREPS &IPAS have one to one mappina.
the Consignee Master of IREPS shall be used invariably in digital processes designed in
connection with TPIAgreement.
3.5. CRIS shall incorporate Quantity and Delivery Period validation in the system at
following stages:
 3.5.1. Inspection Callstage
3.5.2. Inspection Call Registration stage
3.5.3. Inspection Certificate Generation stage

4 System of Billing:
4.1. Monthly centralized billing system shallbe adopted as brought out below:
4.1.1. TPIAgencies shall create their Billon the IREPS Inspection module being
developed by CRIS. The bill will be created Railway / PU wise and GSTIN wise based
onlocation of Consignee, as the Inspection Service is being consumed at the location of
Consignee. As way of ilustration, five separate bills for Western Ralway willbe created
separately one each for Consignees located in Maharashtra, Gujarat, Madhya Pradesh,
Rajasthan, UT of Dadra and Nagar Haveli and Daman and Diu, respectively.
4.1.2. The module being developed by CRIS shall capture the activities carried out
and facilitate calculation of payment due with following break up for each PO serial
number, Railway / PUwise and GSTINWise, based on location of Consignee:
4.1.2.1. Payment towards inspection charges where Inspection
Acceptance Certificate has been issued,
4.1.2.2. Payment towards inspection charges where Inspection Rejection
Certificate has been issued,
4.1.2.3. Payment towards call cancellation where Call Cancellation
Certificate has been issued,
4.1.2.4. Payment towards inspection charges where Re-inspection/Re
validation of Inspection Acceptance Certificate has been issued,
4.1.3. The inspection charges payable to TPlagency shall be calculated by the system
picking inspection rate (as %of POvalue) &applicable taxes as per TPI Agency contract
and other information such as PO Value and Quantity from Vendor PO data.
4.1.4. The biling("Bill to" and "Ship to") will be to the name and address used in GST
registration with the indication of PCMM of concerned Railway /PU unit and State
involved toavoid any mis-matches. As a way of illustration, GSTIN of Indian Railways in
Gujarat is the name of Ministry of Railways with address of DRM office, Ahmedabad.
Incases of inspections carried out for WR Consignees located in Gujarat, the billing will
be to Ministry of Railways DRM office address (for PCMMWR, Gujarat). Stores
Department of WR shall coordinate and educate the TPI Agencies for correct billing
practice to be adopted by them.
4.1.5. Each line item of the bill shall refer to PO Sr.no. and will have details like
Consignee,consignee department, allocation,accounting unit, accrual accounting code,
quantity inspected, date of inspection, inspection fee amount, Tax, Total, TDS-IT, TDS
GST,GSTITC Flag and UWID (if applicable) for tallying with aggregate of e-Invoice. The
aggregate of e-invoice shall be matched with the total of line items and be validated by
the system.
4.1.6. GSTIN of supplier and recipient will decide incidence of IGST/
CGST/SGST/UTGST- necessary logic to be built by CRIS in the System for bill
preparation.
 4.1.7. In case TPIAgency bills from offices using different GSTIN (e.g., RITES bills from
Regional Ofices each havingdifferent GSTIN), the same willhave to be captured on
IREPS for billcreation and in such cases the billing will be Railway / PUwise and GSTIN
wise based on location of Consignee with each billbeing raised from one GSTIN of the
TPIAgency only. As away of ilustration, WR-Gujarat billcan be from adifferent GSTIN
of a TPl Agency while the WR-MP billcan be from another GSTIN of the same TPI
Agency. However, WR-Gujarat cannot be billed from two GSTIN of the same TPI
Agency.
4.1.8. TPIAgency shall prepare e-Invoice GSTINwise and Railway PU wise for the
inspectioncharges calculated by the System during Bil Preparation broughtout in this
para 4.1 above. The e-Invoice amount shall be tallying with billgenerated by the System.
4.1.9. These e-invoices uploaded by the TPI Agencies shall be linked with
corresponding bill having complete breakup of each line item such as PO No.,
Railway/PU, Concerned Railway/PUUnit, Consignee, Allocation, Accounting Unit, Type
of PO (Stock/Non-Stock), Inspection Charges Payable.
4.1.10. The Inspection Certificate generated on system by Inspecting Authority
shall be accepted by Stores as proof of service rendered for settling TPI claim.
After all the system validations are carried out and the billis ready, the same will
be forwarded by WR Stores (from IREPS) to WR accounts (in IPAS). The e-Invoice
shallbe passed on by IREPS to IPAS to L1 ID of Western Railway.
4.1.11. The registration of each e-Invoice will be done separately by Western Railway.
However,functionality of auto-registration of bills i.e. allotting C06 shall be
adopted when available in IPAS

5. System for Billpassing and payment:

5.1. CRIS shal, for each Rilway / PU, GSTIN Wise e-lnvoice, provide for a statement
showing Railway/PU, Consignee, PO number, PO Serial Number, Quantity for which
inspection acceptancel rejection/ call-cancellation/ re-inspection/ re-validation has occurred,
PO Value, Inspection Fee calculated, Allocation, UWID, ACC, ITC flags as may be required,
along with the facility to open PO and/or Inspection certificate or other relevant documents
andcross-verify.
5.2. E-invoice details shall be validated from GSTR-2A at the stage of bill forwarding in
IREPS and shalldisallow bil forwarding in IREPS if bill details do not match. This willallow
quicker corrective action at TPI Agencies' end.
5.3. For each PO Sr. No. line item, for which payment is claimed, a System Check will
be conducted for following:
5.3.1. Inspection Agency / Vendor / Consignee at the bill reation stage,
5.3.2. Quantity: In addition to bill creation stage, a System check may also be kept at
following stages such that total quantity inspected does not exceed total PO quantity
(considering +5%).
5.3.2.1. Inspection call stage
5.3.2.2. Inspection certificate generation stage
5.3.2.3. Bill passingstage
5.4. Inaddition to above, CRIS shallensure that some additional checks as brought out
below shallalso be conducted by System:
5.4.1. System checks for Paymentmade to TPIAgency, such that at any stage,
payment made to TPIAgency shallnot be more than that calculated for 105% of total
quantity ordered in the PO on goods vendor and assigned to TPIAgency for inspection
(considering amendments) provided that in cases of rejection, call-cancellation,re
inspection, re-validation, the amounts payable will be checked adding inspection
charges for such events.
5.4.2. In case of payment to be made against Call cancellation certificate,
Inspection rejection certificate and Re-inspection/Re-validation of Inspection
Acceptance Certificate, recovery on Centralized Recovery Register need to be
registered automatically against vendor and a confirmation shown with identification
number.
5.4.3. Quantity needs to be validated for each PO line item in IC
5.4.4. Once Billhas been prepared for an Inspection Certificate, the System shal
not allow it to be included in preparation of another Billexcept in case of returned bills.
5.4.5. Aprocess of completionof physical inspection shallbe incorporated in the
system by CRIS. In this process:
5.4.5.1. Vendor shall submit the date and time of completion of physical
visit through his login.
5.4.5.2. CRIS in due course shall also explore possibility of capturing a
photograph with date &time stamp taken at the site of inspection, showing
Authorized Inspector &Vendor Representative with the goods during physical
inspection. This photograph may be uploaded by Authorized Inspector on the
portal.
5.4.5.3. Inspection Certificate shall be allowed to be prepared only after
this process is complete. However, the process shall not be mandatory for issue
of Call Cancellation, which shall be permitted even without the above.
5.4.6. Each Inspection Certificate will be linked to the receipt of material (DRR/RIentry
etc.) subsequently captured against it. An Exception Report shall be made available in
the System showing Inspection Details for which payment of inspection fee has been
made but there is no receipt of material (DRRIRIentry etc.) in the System (UDM/IMMS)
even after a lapse of 60 days from the date of issue of Inspection Certificate. This
exception report shall be flagged by the System to all Zonal Railways/PUs i.e.
Consignees and Purchase Oficers and to the suppliers who have not delivered the
goods for examination and review. These cases will be monitored regularly by the Zonal
Railways/FPUs for clearance. Zonal Railways/PUs may put in place a suitable mechanism
for such monitoring. In case any item remains outstanding (|C issued but no DRR/RI
entry/R-note/Rejection) even after 180 days from the date of issue of Inspection
Certificate,the system shall automatically initiate recovery of inspection fee paid in such
cases from the supplier concerned under advice to the supplier. The amount
recovered
such cases (including GST paid) shall be recovered from bill in hand and passed on
to the railway, on whose behalf recovery has been made. The payment so withheld will
be creditedto "Deposit Miscellaneous"
 5.4.7. Inspection work willnot be allotted by the System on expiry of these contracts
of TPIAgencies unless extension is granted. Asuitable check for this shallbe provided
by CRIS in the System.
5.4.8. Billshallbe passed after above System Checks and validation of e-invoice.
5.5. In case of any mismatch, System will lag such items and bil shall be retuned
without passing for rectification.

6. Booking of expenditure and transfer of debits:

6.1. Line items in bills passed for Inspection of Goods pertaining to Home Railway will
be booked in Demand 12 for Stock ltems and Transfer Allocation for Non-Stock items
respectively by Western Railway.
6.2. In case of Bills of Inspection of Goods pertaining to Other Railways/PUs (other than
Western Railway),both for stock and Non-Stock bills:Transfer allocation willbe picked from
System for each Invoice line item. The final booking will be done by the concerned
Railway/PU, for which complete details will be passed on by the System to the concerned
Railway/PUto enable the same.
6.3. Recipient Railway shall bifurcate and transfer the debit to the concerned units within
the Railway. The respective units willconfirm and prepare JV with allocation for final head.
Allocation shallbe proided automatically by the System based on the allocation provided in
demand and the PO. In viewofall the details already captured and validated in the envisaged
System, this leg of booking shallalso be automated as far as JV preparation is concerned,
since rejection of TC is not allowed. CRIS shall also enable Paying Unit wise bifurcation of
debits by configuring the System to generate Accounting unit wise Statement of Debits
obliviating the need of segregation /sorting at Zonal Railway level.
6.4. The System shallhave provision for automated Online JV and TC on real time basis
(cash TC) along with relevant vouchers:
6.4.1. TCs will be forced to be accepted by destination accounting unit and they
cannot be returned as done in existing System. Al relevant documents like Purchase
rder, Modification advice, Invoice/bill, Inspection Certificate etc. shall also be
forwarded automatically to concerned destination accounting unit along with TC.
6.4.2. When the Transfer transaction allocation is used for billpassing; the System
should take care of Auto OUTWARD &INWARD and JVs after preparation of C
Cheque Abstract. In view of all the details already captured and validated in the
envisaged System, this leg of booking shallalso be automated as far as JV preparation
is concerned since rejection of TCis not allowed.
6.4.3. At the same time, JV should appear at receiving Railway/PUlunit for
acceptance and confirmation, thereby eliminating initiation of TC preparation as a
separate activity after bill passing. This activity will not be required after automation is
done by CRIS.
6.4.4. If any change, amendment or transaction is required after TC is sent, then
concerned Zonal AccCOunting Units shallcary out activities necessary for effecting it
without referring to WR.
 6.5. As soon as the payment is made by Western Railway, the GST Invoices along with
the debits, all the relevant data and documents pertaining thereto shall be transferred to
Railway/PUconcerned by the online System being developed by CRIS on real time basis to
enable the concerned Railway/PU for taking all actions related to GST such as filing of GST
TDS returm in FORM GSTR-7 and availing eligible input tax credits post reconciliation with
FORM GSTR-2B.
6.6. GST TDS willbe deducted by Western Railway using the GSTIN of the Consignee
State, i.e. recipient of the inspection services,at a single place for all the TPIAgency Bills &
the same will be passed on real time basis, by bill passing Railway through the automated
System to the RailwayPU concerned for crediting Suspense allocation Deposit Misc. (GST
TDS) which willbe cleared at the time of filing monthly GSTR-7. The process will be
automated in IPAS.
6.7. The monthly GST TDS payment and filing of GST return will be done by the
respective Nodal Railway of Consignee state on whose behalf the TPI agency bill is being
passed by Western Railway.
6.8. IT-TDS deduction, filing and any issues related thereto to be handled by Western
Railway.
7. Recoveries on account of KPls, Damages &Penalties:
7.1. The recoveries on account of KPls, damages &penalties will be calculated by the
System and wil be made clearly visible with details at the time of bill passing.
7.2. As far as recoveries from TPl are concerned
7.2.1. Western Railway willpass bills in hand for fullamount and recover the amount
due to be recovered based on KPl, Damages &Penalties and any other recoveries on
account of rejection/warrantee rejection as per the recovery register.
7.2.2. The recovery register shall maintain break-upldetails of recovery (basic
amount/GST etc.)
7.2.3. Recoveries on account of KPls, damages & penalties shallbe affected and
relained by Western Railway.
7.2.4. Digital System for handling rejections and consequent joint inspections at
consignee end shall be developed by CRIS in terms of directions of Railway Board
contained in para 4.2 & 4.9 of RB letter No.2022/RS(G)/779/8 dated 04.01.2023.
System shall have enabling provisions for sending system generated rejection
advice/memo to all stakeholders, joint inspection scheduling, outcome reporting,
lodging any recoveries that become due through system-based processes such as
recovery through CRR or refund through system generated pay order.
7.2.5. Recoveries on account of rejections at Consignee end shall be made by Bill
passing Railway based on system generated recovery advice based on outcome of
Joint Inspection. Such recovered amount, if any, will be transferred to concerned Zonal
Railway on whose behalf recovery has been made. This process shall be automated
including transfer of recovered amount to concerned Railway using transfer allocation.
7.2.6. If Goods, pre-inspected by TPI Agency,gets rejected during the warranty
period, recovery of inspection charges from TPIAgency shallbe made by Billpassing
Railway on a pro-ratabasis and to be transferred to Concerned Railway/PU. CRR shll
be maintained for TPIAgencies for automatic recovery.
 8. Western Railway is authorized to do further detailing, make minor modifications and refine
processes within broad franmework established under this JPO. Any clarifications
regarding the payment procedure to TPI Agencies required by the Zonal Railways/PUs or
any field units shallbe provided by Western Railway. Any issues with policy implicaions
shall also be clarified by Western Railway in consultation with Railway Board.

This is issued with the approval of Competent Authority.

64.2

(VIPUL TRIPAH) Ol o (CHANDAN KUMAR)

Director/Railway Stores(|C)
DirectorlAccounts
Railway Board Railway Board

LIST FOR DISTRIBUTION

MD/CRIS, Chanakyapuri, New Delhi,
Directors of all CTIs,
PCMMS, PCES, PFAS, PCMEs, PCEEs, PCSTES, All Indian Railways &PUs, COFMOW, CORE,
WPO/Patna and RWPIBela
Sr. Prof. (Material Management), NAIR, Vadodara, ED (Stores), RDSO, Lucknow
Chief Commissioner, Railway Safety, Lucknow
Copy to:
TheGenl. Secy., AIRF, Room No. 248,&NFIR Room No. 256-C, Rail Bhavan
The Secy. Genl., IRPOF, Room No. 268, FROA, Room No. 256-D &AIRPOA, Room No. 256-D Rail
Bhavan.

Copy to:
PSOs/Sr. PPSS /PPSs /PSs to:
MR,MOSR(D), MOSRJ)
CRB&CEO, M(TRS),M(Infra), M(0&BD), M(F), Secretary/RB, DG (RHS),DG (RPF),DG(HR), DG(Safety)
Advisor/MR, EDPGIMR, OSDIMR,OSD/CO-ord/MR and AddlPS/MR
All AMs, PEDs &Executive Directors of Railway Board.