Exemption in GeM Vendor Assessment - Process & Fees
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.
OEM Vendor Assessment
Table of Content
- What is Exemption in GeM Vendor Assessment?
- Who is exempted from Vendor assessment
- Steps to file for vendor assessment Exemption
- Role of RITES Post Vendor Assessment Submission
- Process of GeM Vendor Assessment by RITES
- Key points of GeM vendor assessment
- Fee of GeM Vendor assessment
- Conclusion
- Frequently Asked Questions
What is Exemption in GeM Vendor Assessment?
Exemption in GeM Vendor Assessment allows certain sellers to participate on the Government e-Marketplace (GeM) without completing the full vendor assessment process. It is designed to simplify registration and save time for eligible vendors. This exemption applies to Public Sector Units (PSUs) and government-represented entities, high-turnover vendors with ₹500 Crore or more in any of the last three years, Original Equipment Manufacturers (OEMs) with certifications like BIS, DRDO, OFB, or SITRA, vendors selling non-standard products such as handicrafts or artwork, and sellers recommended by government departments for specific categories. Overall, it ensures faster onboarding and smooth participation in government procurement.
Who is Exempted from GeM Vendor Assessment
Certain sellers are exempt from the vendor assessment test based on specific product categories or guidelines. Below is a list of sellers exempt from assessment:
- High Turnover Sellers: Annual turnover of Rs. 500 Cr or more in any of the last three years.
- Public Sector Units (PSUs): Central or state PSUs are automatically exempt.
- Non-Standard Products: Sellers of artwork, handicrafts, or other non-standard items.
- Government-Linked Societies: Registered societies, trusts, or bodies with government representation.
- KVIC, WDO, Coir Board, TRIFED: Sellers from these organizations.
- OEMs with BIS License: Valid for 3 years; must notify GeM of cancellations.
- OEMs with UCC: Exemption valid for the duration of the Unique Certification Code.
- CPSEs & Government Authorities: Sellers recommended for exemption by CPSEs or government departments.
- Other Sellers: Any other sellers approved by the CEO of GeM.
Steps to File for 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.
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.
- 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.
- RITES will initiate the process by sending an e-mail to the seller’s registered e-mail address with detailing the process of assessment.
- RITES will also verify those sellers who have applied for exemption and mark their status.
Other Types of Registration for GeM Services
Process of GeM Vendor Assessment by RITES
The GeM Vendor Assessment Process is categorized into two main types depending on the nature of the seller and their business operations.
Desktop Vendor Assessment
- Conducted entirely online using the seller's uploaded documents.
- Perfect for service providers, resellers, and traders.
- No site visit or physical inspection is necessary.
- quicker and more economical procedure.
Video Vendor Assessment
- Primarily needed by manufacturers and OEMs.
- Includes RITES/QCI officials visiting the factory in person or conducting an inspection via video call.
- Focuses on confirming quality systems, production capacity, and infrastructure.
- Guarantees legitimacy for large-scale government purchases.
Key Points of GeM Vendor Assessment
The GeM Vendor Assessment is conducted to ensure that sellers on the Government e-Marketplace (GeM) are genuine, reliable, and capable of delivering quality goods and services.
- Fully Online Assessment Process : The GeM Vendor Assessment process is completely online, ensuring a seamless experience for sellers.
- Assessment Validity : The validity of the Vendor Assessment is 3 years from the date of completion.
- Early Assessment Option : Sellers have the flexibility to appear for the Vendor Assessment before the due date of validity.
- Non-Refundable Vendor Assessment Fee : The Vendor Assessment fee must be paid directly to RITES, and it is non-refundable.
- Contact by RITES : After completing the Vendor Assessment application, RITES will contact applicants within 15 working days.
- Mandatory Vendor Validation : Vendor validation is mandatory for all seller.
Fee of GeM Vendor Assessment
The Vendor Assessment Fee is based on the annual turnover of the seller. Below is the breakdown of the fees, inclusive of GST:
| 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 |
Conclusion
Exemption from GeM vendor assessment offers significant benefits to eligible companies by reducing the compliance burden and simplifying the registration process. Companies such as NSIC registered OEMs, DPIIT recognized start-ups and government organizations can use this exemption to expedite their participation in public procurement. However, knowing the eligibility criteria and submitting the required documents is crucial for the exemption process to run smoothly. Companies wishing to take advantage of the GeM without undergoing the supplier assessment can efficiently manage the requirements with professional support.
Frequently Asked Questions (FAQs)
What is GeM Vendor Assessment Exemption?
GeM Vendor Assessment Exemption allows certain sellers to bypass the standard vendor assessment process on the Government e-Marketplace (GeM) portal. Exemption is granted to eligible vendors such as PSUs, OEMs with BIS license, high-turnover companies, or other specific categories.
How to check if my vendor is exempt in GeM?
To check exemption status, log in to your GeM account, go to “My Account” → “Vendor Assessment”, and look for the exemption status on your profile. If your vendor falls under any eligible exemption category, it will be displayed there.
How to apply for GeM vendor assessment exemption?
GeM vendor assessment exemption can be applied by selecting the exemption option on the GeM Portal during seller registration or bidding and submitting the required self-declaration and supporting documents as per GeM guidelines.
Who is eligible for GeM vendor assessment exemption?
Sellers with an annual turnover of Rs 500 Crore or more, Central/State PSUs, OEMs with BIS license, and other specified categories.
What is the role of RITES in GeM vendor assessment?
RITES is responsible for issuing OEM status and conducting the assessment process.
Can MSMEs or startups get GeM exemption?
Yes, certain startups and MSMEs may qualify for exemption depending on eligibility criteria defined by GeM, such as specialized products or government-recognized certifications.
How long is GeM exemption valid?
Exemptions based on a BIS license are valid for three years.
Other categories may have different validity periods as per GeM guidelines.
