L1 Comparison on GeM Portal
Updated on September 05, 2025 12:17:01 PM
The sellers can get involved in the L1 Comparison on GeM Portal, Once the product is listed in the GeM portal. L1 Comparison on GeM Portal is an essential process through which government buyers can determine the lowest price at which the sellers are willing to offer the product or service. The L1 Comparison process aids in the determination of fair and standard prices when it comes to the procurement in the government sector.
Bid submission is mandatory for L1 Comparison on GeM Portal to improve the visibility of the products besides increasing the probability of winning bids. The procurement products and services that are available on the GEM Portal have a classification system, and in order to be able to L1 Comparison, the sellers need to meet specific requirements of the classification. The L1 Comparison feature assists government buyers in making sound purchasing decisions while providing for fair competition.
L1 Comparison on the GeM (Government e-Marketplace) portal is the process of evaluating offers from multiple sellers to identify the Lowest One (L1) bidder who provides the most competitive price for a product or service. It does not simply mean choosing the cheapest option; the seller must also meet all mandatory requirements such as quality standards, technical specifications, certifications, and delivery timelines.
This mechanism ensures that government buyers can make cost-effective and transparent procurement decisions while maintaining compliance with established norms. By enabling buyers to compare and select the lowest-priced eligible seller, L1 Comparison promotes fair competition among vendors, supports efficient utilization of public funds, and increases trust in the procurement process.
Here are some of the key benefits of L1 Comparison on GeM Portal for your business:
By following the process below, sellers can effectively participate in L1 comparison on GeM portal for competitive bidding and transparent procurement.
All sellers before selling their products have to first create an account with GeM which requires valid business details and documents.
Complete the seller profile with compliance documents as per the requirements of legal compliances such as GST number/ Pan number and address proof etc.
Select all the tenders on the portal for which L1 comparison is possible and exclude those which do not meet the criteria by product/service types.
Make competitive bids, making certain all appropriate particulars fulfill the tender’s specifications.
After bid submission, GeM cross-checks all offers placed by the sellers in order to determine the least bid amount (L1).
If a seller is a member of L1, the contract is granted to him/her and various conditions for satisfying the order are discussed.
Fill the order strictly with all specifications and delivery dates of the contract while meeting all the contractual requirements.
The L1 Comparison on GeM Portal fee is Rs 2000 per comparison. This is a charge made where a seller engages in an L1 comparison for that particular tendering or procurement exercise. The L1 Comparison fee is considered for assessing and comparing the bids in the tender and in arriving at the Lowest Bidder (L1) for the contract.
The following document is required for Product Listing on GeM Portal for your business online on the GeM portal.
Note: Agency can request more documents/ information as needed for verification.
Conclusion
The L1 Comparison on GeM Portal helps to establish the principles of tender fairness and competing in the governmental contracts. L1 Comparison on GeM Portal allows the sellers to directly engage in bidding which assists government buyers to pick the L1 in order to obtain the cheapest supply. The L1 Comparison on GeM Portal promotes friendly rivalry with other businesses, increases the contractors’ exposure and, therefore, their likelihood of being awarded a contract. Even though the L1 Comparison on GeM Portal fee is Rs 2,000 per comparison, it is a helpful way for businesses to access a large market while keeping things transparent and simple for procurement. To execute the L1 Comparison on GeM Portal process successfully, sellers must qualify and present some documents.
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.
L1 means Lowest One, a term used in procurement and tendering. It refers to the bidder or seller who quotes the lowest price among all technically qualified participants. Being L1 does not just mean offering the cheapest rate; the bidder must also meet all required eligibility criteria, product specifications, and delivery terms. This ensures transparent, competitive, and cost-effective procurement.
L1 Comparison in GeM (Government e-Marketplace) is the process of selecting the Lowest One (L1) bidder from all eligible sellers for a product or service. It ensures that buyers choose the seller offering the lowest price while also fulfilling all required conditions like quality standards, technical specifications, certifications, and delivery timelines. This process helps government departments make transparent, fair, and cost-effective procurement decisions.
The Government e-Marketplace (GeM) portal has three primary types of bids:
Standard Bid – A regular bidding process where sellers compete based on predefined specifications.
Bid to RA (Reverse Auction) – Starts as a bid and can be extended into a reverse auction for further price reduction.
Custom Catalogue-Based Bid – Created when buyers require specific products or services not listed in the standard GeM catalogue.
Additionally, bids on GeM can also be classified by product type (Product, Service, BOQ) or by evaluation process (Single Packet vs. Two Packet Bids).
The documents that must be uploaded are Company registration documents, PAN card, GST registration, Bank cheque for payment, Financial statements, Purchase orders, and more.
The L1 Comparison process raises recognition, promotes lower prices purchasing, and eliminates unfair competition, helps to simplify the purchase procedures, and improves business reliability, which results in new orders‘ likelihoods.
After bids have been tendered by suppliers, GeM performs bid cross-verification to arrive at the lowest bid commonly referred to as L1. Any seller who offers the lowest price gets the contract, and they are supposed to deliver the ordered products based on the agreement made.
No, registration on GeM Portal is compulsory for the sellers before they undergo the L1 Comparison process.
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