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GeM Registration - Process, Benefits, Vendor Assessment, Documents Required, Fees

Updated on June 19, 2021 11:30:35 AM

Government e-marketplace, commonly known as GeM, is a platform hosted by DGS&D for procurement of goods & services by the Government department. Public procurement has always been an essential part of government activities. The government’s intention behind introducing GeM was to enhance transparency, efficiency, and speed in public procurement.
GeM provides the tools of e-bidding, reverse e-auction, and demand aggregation to facilitate the government users, achieve the best value for their money. The list of entities who can register their business on the GeM portal is Proprietorship, Partnership, Limited Liability Partnership, Private Limited Company, Public Limited Company, Foreign Subsidiary Company, etc.

GeM Vendor Assessment Sample Report

What is GeM?

Government e-Marketplace (GeM) is an online platform for public procurement of goods and services by central and state government organizations. The purchases through GeM by Government users have been authorized and made mandatory by the Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.

GeM Portal Registration

GeM or Government e-Marketplace is an e-commerce portal to facilitate and enable easy online procurement of consumer goods and services required by several government departments, associations, and public sector undertakings in India.

The sole purpose of this online portal is to enhance transparency, efficiency, and speed in public procurement along with inclusion. To avail of all the benefits of the GeM, one needs to register themselves as a buyer or seller on the online GeM portal.

Important Points:

  1. To act as a Reseller, an Authorisation letter (From OEM) is required for a particular category of products
  2. OEM's are classified into 4 Types:
    1. Manufacturers
    2. Brand owners & third Party manufacturing
    3. Importer & Authorised Sellers
    4. Service Provider
    5. Assemblers

Process of GeM registration

Process of GeM Registration

Step 1. ID Creation & Profile completion.

Step 2. Bidder can be a Reseller or an OEM

Step 3. Manufacturers are required to go through the Vendor Assessment process to get the OEM certificate..

Step 4. Once a Bidder is registered as a Reseller or as an OEM then Product Listing is required.

Step 5.Products are on approval mode from the GeM admin department.

Process of GeM Registration as a Seller
  1. ID Creation
  2. Profile Completion
  3. Caution Money Payment
  4. OEM Panel Application / Vendor Assessment (Mandatory For Manufacturers)
  5. Brand Listing
  6. Product Listing
  7. Bid participation
Process of GeM Registration as a Buyer
  1. Aadhar Authentication
  2. Form Filing & Completion
  3. Inspection from GeM
  4. Approval from GeM

Documents Required For GeM Registration

Documents Required For GeM Registration

Registration on GeM is a complete online process. Since GeM is a portal for both buyer and seller, the documentation and registration are also different. Let's take a look at the documents one should be ready with while registering as a buyer and then we will understand the same for the seller as well.

Documents required for GeM registration as a Buyer

Only the head of the department can register as a buyer on the GeM portal. The following documents are needed for registering as a buyer:

  1. Government email ID (preferably designation based)
  2. Aadhaar number
  3. Active Mobile number to which your Aadhaar is linked (for OTP purpose)

Documents required for GeM registration as a Seller

Details Proprietorship Partnership Firm Companies Trust/ Society/ Association of Person Government Entities
PAN No. PAN No. of the owner of the organization Firm PAN No. Company PAN No. Organization PAN No.
CIN No. Not applicable CIN No. of Registered Firms Company CIN No. The registered number of the organization
Key Person Validation Not applicable Normally the person who filed the IT return should be registered as a Primary user. Based on the director’s detail obtained from CIN validation, this key person validation can be done
Location Details Details of - Registered Office, Billing Address, Factory, Warehouse, other Office Premises
Bank Details Bank details of the entity to be entered. Please note: In case if more than one bank details are provided then only one of them will be considered as a Primary Bank

Benefits of registering on GeM Portal

Benefits for Startups on GeM

Advantages of GeM Registration For Sellers

  1. Access to National Public Procurement market
  2. Special provisions and sections for startups, MSMEs, and Emporium products
  3. Fully online, paperless, and contactless platform
  4. Multiple invoices for a single order
  5. Easy access to participate in bids/reverse auction
  6. The clock has been enabled in RA to display the remaining time for seller participation
  7. All sellers will be shown reasons for rejection
  8. Seller friendly dashboard for monitoring supplies & payments
  9. Seller belonging to North-East states and J & K are exempted from ITR at the time of bid participation
  10. Dynamic Pricing - Price can be changed based on market conditions
  11. Direct access to Government departments and their organizations
Benefits for Startups on GeM

Advantages of GeM Registration For Buyers

Advantages of GeM Registration For Buyers
  1. Provide transparency and ease of buying
  2. Direct purchase for amounts up to ₹25,000
  3. L1 purchase for amounts greater than ₹25,000 and less than 5 Lakhs rupees.
  4. Price Trends and Price Comparison From Multiple Suppliers
  5. Direct notifications to sellers & Integrated Payment System
  6. Multiple consignees can be selected for Services
  7. Buyers get the option to cancel the Product contract(s) even if the invoice has been generated by seller-provided 15 days have expired from the delivery period
  8. To improve fair participation in Bid / RA, GeM now ensures that at least 3 sellers have participated and offered products from at least 2 different OEMs. In case a buyer wants to proceed with less than 3 Resellers or two OEMs/Brands, they have to upload approval from the Competent Authority.
Advantages of GeM Registration For Buyers

Vendor Assessment

Vendor Assessment

Vendor Validation is mandatory for all sellers in GeM. One component of Vendor validation is Vendor Assessment, which is mandatory for certain sellers. After registering on the GeM portal, a seller needs to list products and then set up an OEM to claim the ownership of the product and service they want to sell.

At present, Vendor Assessment is done by the Quality Council of India (QCI). The QCI Vendor Assessment is done online and the fee has to be paid directly to QCI.

What is Vendor Assessment?

A vendor assessment is performed to determine the quality of a product or service. The assessment will be put into GeM ratings, and the product/service will then be designated verified, which is a filterable parameter that the buyer may utilize in their selection process. This will help buyers make better decisions.

From August 1, 2017, it was made necessary to get a Vendor Assessment of the company's profile and the products that are registered on GeM for offering/sale. It is an important step for evaluating the credentials and quality standards of the seller.

Who can apply for Vendor Assessment?

Original Equipment Manufacturers (OEM) can apply for Vendor Assessment. They can be:

  1. Manufacturing Unit
  2. Assembling Unit
  3. Third-Party manufacturer with or without Brand Name

Please Note: It is important to note that manufacturers who are based outside India can also become OEM on the GeM portal. They have to be a registered foreign subsidiary company in India.

Process of Vendor Assessment

Vendor Assessment is carried out by QCI in two stages:

Desktop Assessment

Desktop Assessment

Information and documents are submitted by the vendor and if any discrepancy is found then non-compliance (NC) would be raised. QCI validates the data and documents provided by the vendor in this stage. The purpose is to verify organization details, financial capacity, production capacity, quality, etc.

Video Assessment

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.

Video Assessment

The following facilities should be kept ready before the video assessment:

  1. An android phone preferably Samsung, One plus, Redmi (Mi), Motorola, etc., and supported android version 5 and above.
  2. A piece of headphone/earphone with microphone.
  3. High-speed internet connection which works well inside the manufacturing site.
  4. The manufacturing site should be in working condition, to show the manufacturing process of the products with all the machines at the site along with manpower.
  5. The quality manager should be available to explain and depict the process of quality assurance of the product.
  6. Documents and certificates for R&D, patent, and prototype (if available).

Once the application for Vendor Assessment is completed in the portal, and payment is made, the seller will be contacted by QCI for further proceedings. QCI shall verify the details and confirm the receipt of the request for assessment through email.

The agency shall conduct vendor assessment of seller based on information provided by sellers in vendor assessment format, fee, and related documents submitted by them for which sellers will be responsible.

The vendor assessment report will be prepared by Agency with due diligence and will be submitted within 15 days of confirmation of receipt of the request for assessment.

Note: Sellers are free to repeat the assessment even before the expiry of validity.

Benefits of Vendor Assessment

Vendor Assessment ensures that prospective vendors and suppliers can meet and comply with certain standards and quality checks.

Vendor Assessment Exemption

Entities having NSIC certificates are exempted from Vendor Assessment.

Document Required for Vendor Assessment

Documents required for Vendor Assessment

Following is the list of initial documents to be furnished by sellers for carrying out Vendor Assessment:

  1. Company/ Firm registration documents
  2. Name, Contact details with the e-mail address of the promoters
  3. PAN card copy
  4. Memorandum of Association & Articles of Association (in case of Companies) or Partnership Deed (in case of Firms)
  5. GST registration (all required in case of multiple billing addresses)
  6. Cancelled Bank Cheque
  7. Copy of Purchased Order copies, Delivery Challans, GRN (Goods Received Note), Invoice for Government Tenders/ Businesses for the last three financial years. These documents are required for all the order details filled in the form of government orders and corporate orders.
  8. Financial Statements (Profit & Loss Statement and Balance Sheet) for the last three financial years.
  9. Vendor Principal Agreement copy (applicable if the entity is a dealer or a vendor of an OEM)
  10. Banker Reference Letter on account performance
  11. Management undertaking stating that the firm is not debarred/blacklisted by any Government Organizations.
  12. Management undertaking for years of experience in dealing with Government Organizations

Note: Agency can request more documents/ information as needed for verification.

Fee for Vendor Assessment

The government fee for Vendor Assessment is Rs. 11,200 + GST.

Validity of Vendor Assessment

The validity of the Vendor Assessment is 3 years.

GeM Registration Government Fees

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/-
Vendor Assessment Fees Rs. 11,200 + GST

Brand Listing on GeM

Applicant can list their brand on the GeM portal easily whether:

  1. Trademark registered
  2. Brand Owner but trademark not registered
  3. Unbranded products

Product and Service Listing on GeM

After the GeM registration process, the dealers, manufacturers, and service providers have to list their products & services on the GeM portal. This process is called Product listing on Government e-Marketplace. The products and services of the sellers/vendors will go live on the GeM website after the listing is approved by the GeM Authority.

Direct Purchase on GeM

Direct Purchase mode is allowed for low-value transactions, allowing the buyer to directly obtain from any available seller on GeM who satisfies the buyer's requisite quality, specification, and delivery time.

GFR rule 149 allows direct online purchases on GeM up to Rs. 50,000/- through any of the available suppliers on the GeM, meeting the requisite quality, specification, and delivery period. However, GeM being a dynamic online marketplace, this is subject to procuring authorities convinced about the reasonability of rates.

L1 Comparison for Direct Purchase

When the purchase amount is more than Rs 50, 000, it is mandatory to do a comparison of the products first and the buyer needs to select the L1 product. For mid-value transactions, the Direct Purchase with the L1 mode is authorized, allowing the buyer to directly acquire from the L1 seller after analyzing all available sellers on the platform who satisfy the buyer's needed quality, specification, and delivery period. A comparison of goods/services from at least three separate manufacturers/OEMs and three distinct retailers is required.

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