Updated on January 15, 2025 01:52:23 PM
GeM, short for Government e-Marketplace, is a digital platform where micro, small, and medium-sized enterprises (MSMEs), along with other sellers and service providers, can list their goods and services for sale to government bodies. The Gem portal streamlines the public procurement process, allowing government organizations to efficiently purchase the goods and services they need while ensuring transparency and accountability in the transactions.
GeM plays a crucial role in making the procurement process more organized, reducing bureaucratic delays, and offering a user-friendly experience for both sellers and government entities. By GeM registration, MSMEs gain access to a vast marketplace where they can compete for government contracts and significantly expand their business reach.
For small businesses, GeM registration is essential as it opens doors to opportunities in public procurement, fostering business growth and allowing them to actively participate in projects critical to government functions. This not only boosts their visibility but also aligns them with the government’s efforts to make procurement more inclusive and supportive of local businesses.
GeM Registration for
GeM registration's full form is Government e-Marketplace (GeM), an online platform for public procurement of goods and services by central and state government organizations.
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.
Government ownership has always been an important part of government operations. The government's purpose in introducing GeM was to increase public ownership transparency, efficiency, and speed. GeM offers e-bidding, reverse e-auction, and demand aggregation solutions to help government agencies get the best possible bargain. The Government e-Marketplace (GeM) is the federal government's e-commerce portal. It acts as a one-stop shop for the easy online purchase of consumer goods and services required by various government departments. The GeM's primary purpose is to ensure that supply procurement is transparent, efficient, and on schedule.
These are the following benefits of registering your business with GeM:
The following document is required to register your business online on the GeM portal.
The GeM registration process for a seller is as follows:
The primary step of seller registration on the GeM portal is account creation. Registration on GeM should be done only by an Authorized Person (Director of the Organization or a Key Person/ Proprietor). Sellers can sign up on GeM through the Aadhaar or PAN Card of Key person of the organization.
Company Profile is divided into 4 main sections, which are mandatory to complete - PAN Validation, Company Details, Office Location and Bank Account. There are 3 other optional sections also - MSE, Startup and Tax Assessment. After updating the profile, caution money payment has to be made according to the turnover.
After the caution money payment, sellers must apply for Vendor Assessment on GeM to get the OEM certificate. GeM Vendor Assessment is mandatory for sellers who want to participate in the public procurement of Q1 and Q2 categories of products. Manufacturers must become OEMs irrespective of the category of products they want to sell on the GeM Portal. Vendor Assessment for GeM is carried out by the Rail India Technical and Economic Service (RITES).
After becoming an OEM on GeM, vendors can list their brands in the relevant category of products and services. Vendors can list their brands whether trademark registered, the brand owner but trademark not registered or unbranded products.
After brand listing, 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 GeM Authority approves the listing.
After listing products and services, sellers can participate in bids and accept orders on GeM. OEMs can appoint or authorize resellers to list their products and services after getting approval.
The vendor assessment fee for the GeM certification is as follows:
| 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 |
Note: The aforementioned Fees is exclusive of GST.
| Caution Money Deposit | Fees |
|---|---|
| Seller Turnover less than 1 Crore | ₹ 5,000/- |
| Seller Turnover in between 1 Crore and 10 Crores | ₹ 10,000/- |
| Seller Turnover more than 10 Crores | ₹ 25,000/- |
Note: The aforementioned Fees is exclusive of GST.
Vendor assessment is primarily used to determine the quality of a product or service. This assessment will be incorporated into the GeM ratings, and the product/service will then be marked as verified. It is a filterable parameter that the buyer can use in their decision process. This will enable purchasers to make better choices for themselves. Vendor assessment is required for all GeM sellers; however, specific merchants must obtain vendor validation. To claim ownership of the items and services they provide, a seller must first register on the GeM Portal, then list their products and establish an OEM.
Applicant can list their brand on the GeM portal easily whether:
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 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 ₹ 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.
Grow Your Business On GeM Portal
Sell your products and services to government buyers by becoming an Original Equipment Manufacturer (OEM) on GeM
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When the purchase amount is more than ₹ 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.
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.
GeM registration offers firms the rare chance to make a Mark in the Central and the State procurements. As a result, receiving a GeM registration certificate, the company receives the right and an opportunity to deliver products and services for state officials and to receive uninterrupted payments for the goods and services provided through the platform. Consequently, for the MSMEs the GeM portal is the platform to transform and escalate the business compatible with the “Make in India” concept.
An essential service delivery model that is very realistic is where the consultants and firms partner with Professional Utilities to offer registration, both in the creation of the account as well as the assessment that is required in the approval of OEMs. GeM platform can be used to participate in auctions, bidding and become a part of long term value added government projects which will bring up positive change for the businesses. Whether you are new GES in India or an old one, to get your chance to vendor and deal with the Indian government, the registration on the GeM portal is helpful.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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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.
Basically there are two types of payments made on GeM portal - One is caution money and other is for vendor assessment.
Caution money payment depends upon the turnover of an entity (starting from 5000). It can be made via cheque or payment gateway on GeM portal.
The GeM portal is a government website created by the government to start bids for various daily needs of government agencies, public sector firms, and ministries. The main focus of the GeM website is to increase transparency and efficiency in government ownership and hiring. Registering on this site allows sellers and buyers to buy and sell their items to the government.
Steps to get a GeM certificate through the GeM portal:
The time duration for the GeM registration process can vary but usually, it takes a few weeks.
To apply for GeM registration in India, visit the official GeM portal and complete your registration process. Then, submit the necessary documents that are needed.
To create a GeM account, you must fill in your Aadhaar number and mobile number linked with AAdhaar. Then, click on the link to get OTP for verification. After the Aadhaar verification, select your organization.
No, Aadhaar is not required for seller registration because the seller can also use PAN for identity verification.
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