Updated on October 11, 2022 05:55:56 PM
GeM registration is mandatory for sellers to participate in the public procurement process. Aftering registering on GeM Portal, sellers can apply for Vendor Assessment, list their brands, products and services, participate in bids and accept the orders.
Read about the benefits, documents required and how to register on the GeM portal.
GeM Vendor Assessment Sample Report
Government e-Marketplace (GeM) is 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.
For GeM registration, the following documents are required:
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 Quality Council of India (QCI).
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.
| 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 |
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 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.
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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.
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.
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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.
Vendor assessment payment can be made through payment gateway available on GeM portal amounting Rs. 11,200 + 18% GST.
RA stands for Running Account, which is generally used in contractual invoices where work is completely in multiple phases.
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.
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.
Original Equipment Manufacturers are termed as OEM in GeM portal. These OEMs are basically divided into four categories under GeM:
The variation in retail price and GeM Price of a product could be due to under mentioned factors:
Buyers can request for change in the existing category from Request Management available in their Dashboard. All such requests would be evaluated by GeM.
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