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What are the Advantages of GeM Registration?

For empowering small traders & manufacturers, the central government launched a transparent e-Marketplace which is known as GeM. Government e-Marketplace is commonly known as GeM. Any small trader or manufacturer can get a GeM registration for their business in very easy way.

What Is Gem?

The Government e-Marketplace (GeM) is commonly an e-commerce portal operated by the GoI. It is an online platform where sellers & government buyers meet to facilitate the procurement of Goods & Services that are required by different Govt. Departments, Organizations, and PSUs.

What Is The Main Goal Behind The Gem?

The main objective behind the beginning of the GeM is to provide transparency, effectiveness & swiftness in procuring supplies. The government came with the GeM portal in 2017 under the Allocation of Business Rules, 1961.

What Are the Benefits of Seller’s Gem Registration?

By acquiring the GeM Registration, you can truly enjoy the following advantages of smarter trade & commerce as proposed by the government-

  • Direct Sell: This feature helps the private traders to sell their products of value up to INR50, 000/- at a fair price directly to the government buyers without any hassles.
  • Assistance to small traders: The traders who is having GeM registration can take advantage from various trade avenues like e-bidding, reverse e-auction, demand aggregation etc.

Buyers on the GeM Portal

Below Mentioned organizations can register on the GeM portal:

  • Central Government & State government ministries.
  • State govt. departments, including their subordinate offices.
  • Central & State autonomous bodies.
  • Central & state PSUs and local bodies.

The following government officers can register their organizations as primary users on the GeM portal:

  • Any officer of
    • Central Government & State government.
    • PSU i.e. Public Sector Units.
    • Autonomous bodies, local bodies, constitutional bodies, or statutory bodies at the deputy secretary of government level.
  • Head of the office at branch. sub-center or unit

The primary users can’t participate in the procurement but are responsible for registering their organizations on the GeM portal. They need to make secondary user’s user accounts, assign them roles & responsibilities and purvey all secondary users’ transactions on the portal.

The secondary users are the buyers for the organization’s procurement. A primary user can be a consignee to receive service/good. The secondary users are officials responsible for procurement on the portal which includes receipt of stores, placement of contracts, payment to the sellers and many more.

The primary user can give the secondary users the role of these

  • A Buyer,
  • Consignee,
  • DDO i.e. Drawing And Disbursing Officer,
  • Paying Authority and Many More.

The buyer is the responsible to process procurement transactions till the order placement stage. The consignee will be the secondary user who is responsible to accept the goods procured and certifying receipt in the buyer organization.

The secondary users should utilize the GeM portal for the purchases as mentioned below:

  • Direct purchase up to INR 25,000 without comparison (except automobiles) through the suppliers available on the GeM portal meeting the requisite specification, quality, and delivery period.
  • L1 purchase through direct purchase for orders above INR 25,001 up to INR 5,00,000 through the GeM sellers having the lowest price by comparison between at least three different OEM i.e. Original Equipment Manufacturers or service providers on the GeM portal meeting the requisite specification, quality, and delivery period.
  • Purchases worth more than INR 5, 00,000 can be made on the GeM portal through the supplier having the lowest price meeting the requisite specification, quality, and delivery period. After obtaining bids, the purchases must be made using the reverse auction tool or online bidding provided on the portal (excluding automobiles, where the limit is INR 30, 00,000).

Registration of Buyers on the GeM Portal

The prerequisites for primary user registration are:

  • Aadhaar number of the primary user.
  • A mobile number linked with Aadhaar.
  • Email IDs are hosted by NIC i.e. National Informatics Centre.

What are the process of buyer’s registration on the GeM Portal is as follows:

  • Visit the GeM Portal and then the primary users have to click on the ‘Sign Up’ button and select the ‘Buyer’ option from the GeM homepage.
  • On the next page, the users have to click on the ‘Review Terms and Conditions’ button, read the T&C document, and select the ‘I have read and agree to the Terms & Conditions of GeM option on the document.
  • Next, the primary users must enter the ‘Aadhar No.’, and ‘Mobile No.Linked with AADHAR’ and click on the ‘Verify Aadhar’ button. The primary users should fill in the required details such as organization details, user name, password, official email ID & mobile number on the account registration form and click on the ‘Create Account’ button.
  • The primary users should verify the official email ID via opening the GeM verification mail sent to the official email ID and click on the ‘Verify Email’ button.
  • The primary users should visit the GeM Portal, click on the ‘Login’ button stick on the homepage, enter your user ID & password, and log in to the GeM portal.
  • The primary users must create secondary users by clicking on the ‘User’ button on the top right-hand side of the homepage, clicking on the ‘Add user’ button, fill up the secondary user’s detail, and click on the ‘Add’ button.

The secondary users can sign in to the GeM Portal by the user ID & password shared by the primary users. The primary users can change the secondary users’s roles and profiles.

The secondary users who have been assigned the buyers’s role by the primary users can log in to the GeM portal, choose the product and add it to the cart. They need to generate demand, generate sanction orders, and create contracts. When the order is placed, the seller will deliver the goods/services to the consignee within the prescribed delivery date and generate invoice on the GeM portal.

The consignee should log in to the portal after receipt of goods or services and generate a PRC i.e. Provisional Receipt Certificate and a CRAC i.e. Consignee Receipt and Acceptance Certificate. After generating CRAC the buyer will process the bill and forward it to the paying authority. The payment will be made within 10 days of the CRAC generation.

What are the Advantages of GeM Portal for Buyers?

  • Provides transparency and lists numerous products for each individual category of goods & services.
  • Price comparison & trends from various suppliers.
  • Easy to perceive interface to search, select, compare & buy.
  • User-friendly dashboard for monitoring payments & supplies.
  • Can select multiple consignees for services.
  • The buyers can apply additional deductions at bill generation time.
  • Provision of the easy return policy.

Sellers on the GeM Portal

These entities can register as sellers on the GeM portal:

  • Proprietorship firm.
  • Partnership firm.
  • Limited Liability Partnership (LLP).
  • Private and public limited company.
  • Society registered under the Societies Act.
  • Statutory bodies.

The seller can be an Original Equipment Manufacturer i.e. OEM or an entity having the authority to sell the products manufactured by the OEM in the open market.

Below mentioned persons are considered OEM and can sell products on the GeM portal:

  • Manufacturers.
  • Brand owners and third-party manufacturing.
  • Importer and authorized sellers.
  • Service provider and Assemblers.

When the sellers register on the GeM portal, they need to list their products or services under the suitable categories. They need to deliver the product to the consignee when an order is received by entering their details on the GeM portal.

When the order is delivered, the consignee will check the product and issue acceptance or rejection online. When the consignee accepts the order, he/she will generate the CRAC. After issuance of CRAC, the buyer will process the bill and forward it to the paying authority. The payment will be made within 10 days CRAC generation.

Documents Required for Registration of a Seller on the GeM Portal

The prerequisites for seller registration are:

  • The AADHAAR number is linked with the mobile number or PAN number.
  • Email ID.
  • PAN number of the business.
  • Registration certificate of the business.
  • Corporate Identification Number i.e. CIN for private ltd./public limited company.
  • Income Tax Return (ITR) details for the last 3 years.
  • Billing address with GSTIN number.
  • Bank account number and IFSC code.

What are the Advantages of GeM Portal for Sellers?

  • Sellers get access to the National Public Procurement market.
  • There is no fee or charge for registration.
  • Multiple invoices for a single order.
  • The sellers can view the reasons for the rejection if the consignee rejects goods.
  • Access to participate in reverse auction/bids in ease way.
  • Sellers belonging to North-East states and Jammu and Kashmir are exempted from ITR at the time of bid participation.
  • Direct access to govt. organizations & departments.
  • Price can be changed as per the market conditions.

The sellers on the GeM portal can be startups, companies, proprietor firm etc. They can easily list their goods on the portal for procurement by government organizations and participate in government bids and auctions. The GeM portal provides transparency in the government public procurement process.