Exemption in GeM Vendor Assessment?

Updated on February 16, 2024 07:57:26 AM

GeM stands for Government e-Marketplace, which is an Indian online platform for procurement of goods and services for government organizations.

The vendor exemption on GeM refers to a system of exemptions and waivers that allows certain categories of vendors to be exempt from certain registration and compliance requirements on the GeM platform.

These exemptions are typically given to small businesses, start-ups, and micro, small, and medium enterprises (MSMEs) as a way to encourage their participation on the platform and to promote inclusive procurement by the government.

The exemptions may include things such as waiving the security deposit required for registration, or allowing vendors to sell certain goods or services without obtaining certain certifications.

The exact exemptions and waivers that are available can vary depending on the policies and regulations of the government agency using the GeM platform. In general, the aim is to make it as easy as possible for small businesses and MSMEs to participate in government procurement and to level the playing field with larger vendors.

Vendor Assessment Sample Report

  • Manufacturing Unit
  • Assembling Unit

Who are Exempted from GeM Vendor Assessment

Under some product categories and guidelines few sellers are exempted from the vendor assessment test for their products and services. These are the following seller exempted from assessment.

  • Sellers having annual turnover of Rs 500 Crore or more, at least in one of the latest three years as mentioned during registration
  • Central or State PSUs
  • Vendors offering products like Artwork, handicrafts, and other such items where, there is no standard manufacturing process exists. The exempted categories shall be specified by the category owner
  • Sellers who are Registered Societies/ Trusts/ other bodies, if these concerns have Government Representation
  • KVIC, WDO, Coir Board, TRIFED
  • OEMs holding BIS License for the particular product category which are validated through BIS database. Normal validity for this exemption will be three years. Seller is mandated to notify GeM in case cancellation of BIS license and exemption will be withdrawn.
  • OEMs having Unique Certification Code (UCC) issued by DRDO/ OFB/ SITRA. This exemption will be coterminous with UCC certificate validity
  • Sellers recommended for exemption for specific categories and specified validity period by any CPSE, Central and State Government Departments/Authorities
  • Any other category of sellers as notified with the approval of CEO of GeM
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Steps to get Vendor Assessment Exemption

If you falls under the exemption category then you can follow these steps to apply for Vendor assessment exemption.

Step-1: Login to your GeM account on the portal with your username and password.

Go to "my account" tab and then click on "My ACTION".

Step-2: Now Click on "CREATE EXEMPTION REQUEST" and select the format for vendor assessment exemption which is applicable as per nature of your category and then proceed.

Step-3: Upload all the necessary documents and certificate to make an assessment exemption request and then proceed further.

Once the uploading of required documents in complete note down your GeM vendor assessment exemption request ID for tracking.

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Role of RITES Post Vendor Assessment Submission

Rail India Technical and Economic Service is the apex body that is solely responsible for issuing OEM status to vendors on GeM portal after successful assessment of their products.

  1. Once the application for vendor assessment is made by the applicant, it will be assigned to RITES with a unique assessment number which will be displayed on vendor assessment panel on GeM portal.
  2. RITES will initiate the process by sending an e-mail to the seller’s registered e-mail address with detailing the process of assessment.
  3. RITES will also verify those sellers who have applied for exemption and mark their status.
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GeM Vendor Assessment Process by RITES

Vendor assessment is carried out by RITES n 2 stages:

1. Desktop Assessment -

Applicants are required to submit Information and documents about their product and process and if any irregularities is found then non-compliance (NC) would be raised.

2. Video Assessment -

Video Assessment is conducted by an expert using the mobile based application through video calling. It will validate the entire process submitted by the vendor through documents in Desktop Assessment.

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Key Points from GeM Vendor Assessment

  • Assessment process is completely online
  • The validity of GeM Vendor Assessment is for 3 years.
  • Sellers are free to appear for the assessment prior to due date of validity.
  • The Vendor Assessment fee as has to be paid directly to RITES which is non refundable.
  • Once the application for Vendor Assessment is completed, RITES will contact applicants within 15 working days.
  • Vendor Validation is mandatory for all sellers in GeM. One component of Vendor validation is Vendor Assessment, which is mandatory for certain sellers.
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Fee and Validity of GeM Vendor Assessment

Annual Turnover Vendor assessment Fee inclusive of GST
Up to 20 lakhs ₹ 871.61
From 20lakh - 1Cr ₹ 1743.22
More than 1 Cr ₹ 3486.44
Caution Money Deposit Fees
Seller Turnover less than 1 Crore Rs 5,000/-
Seller Turnover in between 1 Crore and 10 Crores Rs 10,000/-
Seller Turnover more than 10 Crores Rs 25,000/-

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Frequently Asked Questions (FAQs)

What is an OEM certificate in GeM?

After the Video Assessment, the seller gets the OEM certificate / Report.

Is Vendor Assessment mandatory in GeM?

Vendor Assessment is mandatory for products falling under Q1 and Q2 category on GeM Portal. After registration on GeM, sellers are required to apply for Vendor Assessment to evaluate the credentials and quality standards.

Who can buy from the GeM portal?

The central and state Government does the majority of procurement through GeM; however, private buyers also can enlist themselves to buy goods via GeM guidelines.

How to do Vendor registration in GeM?

Vendor registration can be done through 2 ways:

  • Through Aadhar verification
  • Through PAN verification

After becoming an OEM on GeM Portal, seller can:

  • list brands
  • manage resellers and brands
  • list products
What is OEM in GeM?

Original Equipment Manufacturers are termed as OEM in GeM portal. These OEMs are basically divided into four categories under GeM:

  1. Manufacturer
  2. Brand Owner & Third Party Manufacturer
  3. Imported Products & Authorized Sellers in India
  4. Service Provider
Can a trader register on GeM portal to supply any thing after purchasing a material from the manufacturer or only manufacturer is authorized to register to sell those items?

Both resellers as well as manufacturers are authorized to register on the GeM portal. Manufacturers have the authority to manage their resellers. In order to register as a reseller or trader, an authorization code as well as a letter is required from manufacturers to sell the product on the GeM portal.

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