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

Updated on October 06, 2021 02:27:53 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 registration

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 5 Types:
    1. Manufacturers
    2. Brand Owners & Third-Party Manufacturing
    3. Importer & Authorised Sellers
    4. Service Provider
    5. Assemblers

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
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

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.

Vendor Assessment

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.

It is a requirement for all GeM sellers. Vendor Assessment, which is necessary for certain vendors, is one aspect of vendor validation. A seller must first register on the GeM portal, then list products and then set up an OEM to claim ownership of the product and services they offer.

Non manufacturing OEMs, who are brand owners but do not have self owned manufacturing of the products can still claim OEM status if they are having contract manufacturing arrangements with some other manufacturers. During vendor assessment, Such OEM has to provide the contract / agreement between the OEM and the Contract Manufacturer to the assessing agency. This will be used to derive information about Ownership of Manufacturing Site (of the Contract Manufacturer), Manufacturing Capacity (Agreement should indicate to what extent it is committed to the OEM), Product Quality concerns (Both Contract Manufacturer and the OEM have to indicate their own quality control plans) and Availability of Raw Material etc.

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.

Vendor Assessment

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.

GeM Policy to Maintain High Standards of Conduct

1. High Standards of Conduct

The highest standards of conduct are expected from both buyers and sellers as far as the Terms and Conditions of the GeM are concerned. Following policy is being laid out, for dealing with deviations from Terms and Conditions. Sellers and buyers who are violating GeM Terms and Conditions will be notified through two lists:

a. Watch list

b. Defaulter list

a. Watch list

Whenever an instance of deviation is brought to the attention of the GeM authorities by any stakeholder, the concerned buyer/seller will be issued a show-cause notice through registered email. During the pendency of the reply and subsequent administrative action, the buyer/seller's name will be put under the watch list.

The buyer/seller whose name is on the watch list, will not be prevented from doing any GeM transactions. But whenever such seller/buyer is making any transaction, such as getting selected for direct purchase, L1, quoting in bids, reverse auction, placing an order, an alert shall be made visible to the buyer/seller indicating that the seller is in the watch list.

b. Defaulter list

A buyer/seller name will be in the default list, if

  1. If he fails to reply to the e-mail within the stipulated time.
  2. If the competent authority decides that, he has made deliberate attempts to breach the terms and conditions of GeM.

Once in the default list, the seller shall be disabled from transacting on GeM for a period ranging from 15 days to one year depending on the seriousness of the lapse. If a seller is disabled for three different occasions, a fourth such event will lead to permanent debarment on GeM.

2. Buyer Defaults

The following shall be considered as Buyer defaults:

  1. Refusing to accept the goods without giving any reasons.
  2. Rejecting, received goods (in full or in part) without giving any reason.
  3. Refusing to issue CRAC even after the stipulated time.
  4. Not making payments within the stipulated time.

3. Procedure for handling Defaulters

The following procedure will be followed in dealing with violation of Terms and Conditions:

a. Sellers

b. Buyers

a. Sellers
  1. On detection of the potential default, the seller will be issued a show-cause notice through his registered email, requiring him to file a reply within a maximum period of 7 days. The email shall require him to explain why he shall not be treated as a defaulter for alleged violation of GeM Terms and Conditions.
  2. Pending the reply, the buyer/seller will be put under the watch list.
  3. If no reply is filed within the stipulated period, his name will be taken to the defaulter list indefinitely, leading to the deactivation of the account.
  4. On receipt of the reply, the competent authority will be deciding whether the default is deliberate, if so, his name will be put in the default list for an appropriate time, ranging from 15 days to one year. This administrative action shall be completed within 48 hrs of receipt of reply.
b. Buyers
  1. On receipt of a representation from the seller, the buyer will be issued an email, seeking clarification or appropriate action on the alleged default. Pending the reply, the buyer/seller will be put under the watch list.
  2. If reply is filed within the stipulated period, the buyer will be notified under the watch list, till necessary action is taken by the buyer for completing the transaction online.

4. Competent Authority

All officers of GeM of the rank of Deputy Secretary and above shall be the competent authority for the issue of notices and receiving responses in the specific sectors allotted to them. Five Sectors for this purposes is being notified as below:

  1. Electronics and Electricals, including software.
  2. Automobiles and Taxi Services
  3. Paper Products and Office supplies (excluding Electronic items)
  4. Structural goods, Heavy goods, and machinery
  5. All services except Taxi services.

5. Impact of T & C on Rating

Performance of the buyer/seller in adhering to the Terms and conditions will form part of the rating of the buyer/seller.

How to Accept Orders on GeM Portal?

A seller can accept orders on GeM portal through:

  1. eSign Verification
  2. DSC Verification

Accepting orders on GeM through eSign verification

In order to accept orders on the GeM portal, an eSign account is required which is generated by completing the KYC steps. There are three ways of generating eSign - Aadhar, PAN Card and account creation on eMudhra. Once the eSign is activated, the “eSign verification” method can be used to accept the order on the GeM portal.

Accepting orders on GeM through DSC verification

The second option to accept orders on the GeM portal is “DSC verification”. Organization-based DSC is required to accept the orders on the GeM portal.

Transaction Fees for Accepting Orders

A fixed transaction amount will be charged from the seller according to the slab rate applicable which is based on the order value. The order can only be accepted after paying the transaction fee on the GeM portal.

Here’s the slab rate chart applicable on orders above 5 lakhs:

Order Value (₹) Transaction Fee (%)
Between 5 lakhs and 50 Cr. 0.5%
Between 50 Cr. and 100 Cr. 0.5% on 50 Cr. + 0.4% on values above 50 Cr.
Between 100 Cr. and 200 Cr. 0.5% on 50 Cr. + 0.4% on the next 50 Cr. + 0.3% on values above 100 Cr.
Above 200 Cr. 0.5% on 50 Cr. + 0.4% on the next 50 Cr. + 0.3% on the next 100Cr. + 0.2% on values above 200 Cr.

Make in India (MII) Certificate for OEMs

The Government has released circular No. P-45021/2/2017-PP (BE-II) stating the preferences to Make in India or MII certified OEMs for public procurement on GeM. It is the policy of the Government of India to encourage ‘Make in India’ or MII and promote manufacturing & production of goods and services in India with a view to enhancing income and employment.

All those who possess the Make in India certificate get preference in the L1 Bidding of the tenders. Not only this but other preferences for local suppliers are available on GeM if they possess a Make in India Certificate. L1 means the lowest tender or lowest bid received in a tender or bidding process.

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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Frequently Asked Questions (FAQs)

 Who can Buy/Purchase through GeM?

All vital government and kingdom government ministries/departments including its connected/subordinate places of work, principal and state self sufficient bodies, vital and state public quarter gadgets and neighbourhood our bodies etc. are authorised to make procurement through GeM portal.

 What could be the reason for variation in prices between GeM and other Marketplaces?

The variation in retail price and GeM Price of a product could be due to under mentioned factors:

  1. The prices offered on GeM are inclusive of all taxes.
  2. Products on GeM may have different warranty periods.
  3. Onsite warranty is offered for some products on GeM.
  4. Prices could also vary due to Payment Terms of the transaction.

 What are the concessions on GST?

Certain Buyer organizations are eligible for concession on GST if goods for which bids have been invited fall under classifications for eligibility of concession are met by the institution.

 How can I request for a change in specification of an existing category?

Buyers can request for change in the existing category from Request Management available in their Dashboard. All such requests would be evaluated by GeM.