Rule 143 of The General Financial Rules 2017 Definition of Goods
Original Rule Text
Visual Summary
Includes articles, materials, livestock, furniture, machinery, software, and intellectual properties.
Books, publications, and periodicals for a library are not considered goods.
Transportation, insurance, installation, commissioning, training, and maintenance.
Executive Summary
Rule 143 of The General Financial Rules, 2017 provides a comprehensive definition of ‘goods’ for public procurement purposes. It broadly includes all tangible and intangible items acquired by the Government, such as materials, equipment, software, and intellectual properties. Crucially, it also encompasses incidental services like transportation, installation, and maintenance that are consequential to the supply of these goods. However, it explicitly excludes library-related items like books and periodicals.
In-Depth Analysis of the Rule
Rule 143 serves as a foundational definition within the General Financial Rules, 2017, clarifying the scope of items and associated services that fall under the ‘goods’ category for government procurement. This clarity is essential for proper classification, budgeting, and adherence to procurement procedures outlined in subsequent rules.
Breakdown of the Rule
- Core Definition: The rule defines ‘goods’ broadly to include a vast array of physical items such as articles, materials, livestock, furniture, fixtures, raw materials, spares, instruments, machinery, equipment, industrial plants, vehicles, aircraft, ships, medicines, and railway rolling stock.
- Intangible Assets: Significantly, it extends the definition to intangible products like software, technology transfer, licenses, patents, and other intellectual properties, provided they are purchased or acquired for Government use.
- Exclusions: It explicitly excludes books, publications, periodicals, and similar items intended for a library, indicating that these are treated differently in procurement contexts.
- Incidental Services: A critical aspect is the inclusion of ‘works and services which are incidental or consequential to the supply of such goods’. This covers activities like transportation, insurance, installation, commissioning, training, and maintenance, ensuring a holistic view of procurement.
Practical Example
When a government department procures new computer servers, Rule 143 dictates that not only the physical servers themselves are considered ‘goods’, but also the operating system software (intangible product), the warranty (incidental service), the delivery and installation charges (incidental services), and any initial training provided to staff (incidental service). This comprehensive definition ensures that all related costs and components are managed under the same procurement framework.
Related Provisions
Understanding Rule 143 is crucial for interpreting subsequent rules governing the procurement process:
- Rule 142 of The General Financial Rules, 2017 General Rules for Procurement of Goods: Sets out the overarching rules for goods procurement.
- Rule 144 of The General Financial Rules, 2017 Fundamental Principles of Public Buying: Details the core principles of efficiency, economy, and transparency in public procurement.
- Rule 149 of The General Financial Rules, 2017 Government e-Marketplace GeM: Mandates procurement through the GeM portal for common use goods and services.
Learning Aids
Mnemonics
- Goods Include All Tangible Items & Services Except Library Books: G.I.A.T.I.S.E.L.B. (Goods Include All Tangible Items & Services Except Library Books)
Process Flowchart
Multiple Choice Questions (MCQs)
1. What does Rule 143 of the General Financial Rules, 2017 primarily define?
- A) Financial liabilities of government departments
- B) The scope of ‘goods’ for public procurement
- C) Procedures for inter-departmental adjustments
- D) Rules for grants-in-aid to autonomous bodies
Show Answer
Correct Answer: B) The scope of ‘goods’ for public procurement
2. Which of the following is explicitly excluded from the definition of ‘goods’ under Rule 143 of the General Financial Rules, 2017?
- A) Industrial plant
- B) Technology transfer
- C) Books for a library
- D) Railway rolling stock
Show Answer
Correct Answer: C) Books for a library
3. According to Rule 143 of the General Financial Rules, 2017, which of these is considered an ‘incidental service’ to the supply of goods?
- A) Legal consultation for contract drafting
- B) Recruitment of personnel for a project
- C) Installation of machinery
- D) Office stationery procurement
Show Answer
Correct Answer: C) Installation of machinery
4. Intangible products like software and patents are considered ‘goods’ under Rule 143 of the General Financial Rules, 2017 if they are:
- A) Developed internally by government staff
- B) Purchased or otherwise acquired for Government use
- C) Freely available in the public domain
- D) Used for non-commercial purposes only
Show Answer
Correct Answer: B) Purchased or otherwise acquired for Government use
5. The definition of ‘goods’ in Rule 143 of the General Financial Rules, 2017 is important for:
- A) Determining the salary structure of government employees
- B) Classifying items for proper budgeting and procurement procedures
- C) Regulating inter-state financial transactions
- D) Establishing rules for public debt management
Show Answer
Correct Answer: B) Classifying items for proper budgeting and procurement procedures
Frequently Asked Questions
Q: Does the term ‘goods’ under Rule 143 of the General Financial Rules, 2017 include services?
A: Yes, Rule 143 explicitly states that the term ‘goods’ also includes works and services which are incidental or consequential to the supply of such goods, such as transportation, insurance, installation, commissioning, training, and maintenance.
Q: Are intangible products like software and patents considered ‘goods’ under Rule 143 of the General Financial Rules, 2017?
A: Yes, the rule includes intangible products like software, technology transfer, licenses, patents, or other intellectual properties purchased or otherwise acquired for the use of Government.
Q: Why are books and periodicals for a library excluded from the definition of ‘goods’ in Rule 143 of the General Financial Rules, 2017?
A: The rule specifically excludes these items. This suggests that they may fall under a different procurement or accounting category, likely due to their unique nature as informational resources rather than typical consumable or capital goods.
Key Takeaways
- Rule 143 broadly defines ‘goods’ for government procurement, encompassing both tangible and intangible assets.
- It includes essential incidental services like transportation, installation, and maintenance.
- Specific exclusions are made for library-related items such as books and periodicals.
- This definition is fundamental for accurate classification and adherence to procurement rules.
Conclusion
Rule 143 of The General Financial Rules, 2017 provides a clear and comprehensive framework for understanding what constitutes ‘goods’ in the context of government procurement. By defining both tangible and intangible items, as well as associated services, it ensures that all aspects of an acquisition are properly categorized and subjected to the appropriate financial and procurement regulations, thereby promoting transparency and accountability in public spending.