Benefits of Gem Registration For Sellers And Buyers

What is the GeM Portal?

The Government e-Marketplace (GeM) is an online platform launched by the Government of India. It is designed to make the buying and selling of goods and services for government departments, ministries, and public sector organizations simple, transparent, and efficient.

Through GeM, sellers, manufacturers, and service providers can directly connect with government buyers without the need for middlemen.

The portal helps government departments meet their day-to-day needs by offering a wide range of products and services through online bidding and procurement.

Why Was GeM Created?

The GeM portal was created based on the recommendations of a Group of Secretaries to the Honorable Prime Minister.

Initially, it was launched as a pilot project available only to Central Government Departments and Central Public Sector Undertakings (CPSUs) in the Delhi/NCR region.

After successful testing, the government planned to expand GeM across the country.

A full version of GeM was targeted to be launched by March 2017 with the help of consultants and a Managed Service Provider (MSP) to handle the portal professionally.

The main goals of creating GeM were:

To increase transparency in government buying.
To make purchasing faster and more efficient.
To boost employment by supporting small businesses and sellers.
To allow government departments to get better prices and quality by encouraging open competition.

How the GeM Portal Works

The GeM portal works similarly to any online shopping site like Amazon or Flipkart, but with a key difference:

Only government departments and organizations are buyers.
Any registered seller can list and sell products or services

After registering, sellers can upload their product catalogs, offer prices, participate in bidding, and receive purchase orders directly from government buyers.

Government officials can browse products, compare prices, place orders, and even conduct e-auctions for larger purchases.

Important Rule Supporting GeM

To support GeM operations, the Ministry of Finance introduced a new rule called Rule No. 141-A in the General Financial Rules (GFR) 2005.

This rule officially allows all government users to make direct purchases through the GeM platform instead of going through long tendering processes.

This step was taken to save time, reduce paperwork, and encourage fair competition among suppliers.

Advanced Features Offered by the GeM Portal

The GeM portal is not just a basic buying and selling site. It offers many advanced business-to-business (B2B) e-commerce features that make government buying smarter and fairer:

E-auction: Buyers can invite sellers to bid and select the best offer. Reverse e-auction: Prices can go down through competitive bidding, helping buyers get the best deal.
Market aggregation: GeM combines orders from different departments to offer sellers bigger, bulk opportunities.
Strict quality control: All products and services listed must meet certain quality standards.
Full transparency: Every step, from listing to ordering and payment, is trackable and visible, ensuring fairness.

These features make GeM more powerful than a regular marketplace and create a win-win situation for both sellers and buyers.

Benefits of GeM Registration for Sellers

Here are some key benefits that sellers can enjoy after registering on the GeM portal:

Access to a National Procurement Platform:

Sellers get full access to a centralized government procurement portal, which greatly expands their business opportunities across India.

Special Benefits for MSMEs and Startups:

Micro, Small, and Medium Enterprises (MSMEs) and startups receive special quotas and benefits, including assured procurement in specific categories.

Completely Online Process:

The entire registration and selling process is conducted online, with no need for physical documentation, making it quick and hassle-free.

Increased Brand Awareness and Acceptance:

Selling through GeM helps in building brand recognition and acceptance, especially in new markets across India.

Efficient Grievance Redressal System:

A sophisticated online grievance redressal system is available for both sellers and buyers, ensuring quick resolution of issues.

User-Friendly Dashboard:

Sellers have access to an easy-to-use dashboard for tracking sales, managing orders, and analyzing business trends.

Relaxation for Sellers from Northeastern States and Jammu & Kashmir:

Sellers from these regions are exempted from submitting Income Tax Returns (ITRs) for registration purposes.

Dynamic Pricing Model:

Sellers can adjust their prices based on current market conditions and the demand-supply ratio, allowing more flexibility and competitiveness.

Benefits of GeM Registration for Buyers

Here are the key benefits that buyers enjoy through GeM registration:

Clarity and Convenience in Purchasing:

Buyers can easily navigate the platform and make clear, transparent purchases without confusion.

Wide Range of Product Listings:

GeM provides access to a vast range of goods and services across multiple categories, helping buyers find exactly what they need.

Price Trends and Supplier Comparisons:

Buyers can view price trends and compare prices from multiple suppliers to make cost-effective purchasing decisions.

Direct Notifications to Vendors:

GeM automatically sends notifications to relevant vendors, ensuring quicker responses and better competition.

Integrated Payment System:

The portal offers a secure, streamlined payment system that simplifies transactions between buyers and sellers.

User-Friendly Dashboard for Tracking:

Buyers have access to an intuitive dashboard to track order supplies, monitor deliveries, and manage payments easily.

Efficient Online Grievance Redressal System:

In case of any issues, buyers can raise complaints through an online system that ensures quick and transparent resolution.

How Does GeM Benefit MSMEs?

Around 26% of sellers on the GeM portal are MSMEs, and the government is actively working to increase this number through new budget initiatives and outreach programs.

GeM provides MSMEs with easy access to government procurement by removing lengthy verification steps, reducing lead times, and eliminating the need for middlemen. The platform now also covers service sectors like analytics, inspections, webcasting, and transportation, creating even more opportunities for MSMEs and startups.

The government is improving financing options to help small businesses participate actively on GeM.

Over the past two years, GeM has expanded MSMEs’ market reach, boosted sales, and supported job creation across different sectors.

GeM is truly helping MSMEs grow faster by giving them a direct, transparent, and simple way to sell to government buyers.

Reasons Why To Buy on GeM

Government e-Marketplace (GeM) was introduced in 2016 to revolutionize public procurement in India. Historically, public procurement was plagued by problems such as a lack of transparency, non-standardization of methods, and inefficiency.

As a result, the Government of India intended to construct a transparent and effective digital platform linking merchants nationwide with government purchasers.

With the introduction of GeM, Central Ministries, PSUs, and companies have access to millions of Indian vendors. Currently, approximately 38 million vendors and service providers are registered on GeM.

A technology-enabled platform like GeM does not need registration or bidding fees, allowing buyers to register in minutes and then explore the portal's products and services. Here are several reasons YOU should purchase on GeM:

Contactless and paperless

All GeM processes are digital, and manual interaction is not required. It includes a free registration option, allowing all government buyers to use the portal without difficulty.

It requires no paperwork or human interaction; all required is to register, log in, search, see, compare, and purchase the necessary goods and services.

A large number of sellers and products

GeM has millions of registered vendors across India with millions of items. Additionally, it includes over 10,000 categories and over 48 million goods. Registration and product listing are free of charge for vendors.

Every vendor must comply with the 'Country of Origin,' which requires them to demonstrate that all substances used in producing goods or services are of Indian origin. This helps us achieve our goal of becoming "Aatmanirbhar Bharat."

Many choices, easy selection

With vast goods and services available, picking the one that best meets your needs is simple. The catalogs accessible to all purchasers on GeM are based on golden parameters, which facilitate search, selection, and cost evaluation.

Since a huge and comprehensive listing is available, you may search and compare items and services using various criteria, such as financial, administrative, and technological characteristics.

Technology-driven portal

The state-of-the-art portal is developed with the most up-to-date technology and is expandable on the cloud. Advanced use cases are further enhanced by artificial intelligence and machine learning technologies. The site is accessible 24 hours a day, seven days a week, for transactions between buyers and sellers.

Quality of products on GeM

To ensure consumer satisfaction with the products and services obtained, GeM has implemented procedures such as vendor evaluation, market sanitization, etc., to guarantee that quality products and services reach its customers, leaving no room for low-quality items.

In addition, after verification, including evaluation of quality and quantity, you must produce an online digitally signed Consignee's Receipt & Acceptance Certificate for that step within 10 days of the day you issued the Provisional Receipt Certificate (PRC).

Short bidding and delivery time

In GeM, bids may be produced and published in record time. The buyer can choose the delivery period based on their needs. During the Corona crisis, GeM lowered the bid and delivery period for Covid items such as oxygen kits, cylinders, and concentrators.

There is no human involvement in ordering products or services online or producing contracts. GeM enables you to acquire based on your determined choice and requirements without involving a third party. The entire procedure is conducted online and without paper and can be followed on the GeM Portal.

Integrated payment system

As part of the payment system, GeM has integrated with Banks (Gem Pool Accounts – GPA), allowing you as a buyer to execute online payments.

In addition, GeM has been connected with CPSUs and PSUs, allowing them to keep their ERPs up to date about GeM procurement information. All of this occurs without human interaction, which greatly assists purchasers.

User-friendly dashboard

The goal of GeM is to make purchasing simple for you. You, as a buyer, have access to a personalized dashboard loaded with all contemporary features. You may use the dashboard to keep track of supply, payments, and procedures in general.

Required Documents for GeM Registration

Aadhar Card and PAN Card
The mobile number is associated with the Aadhar card.
Business objective
E-mail I'd
The previous three years' income tax return
A three-year balance sheet of the company
Service Tax registration number
Current bank Account
MSME Certificate

Conclusion:

As you can see, GeM is the platform for all government buyers and sellers to transact business. GeM has made all government purchases easy and efficient and there are many gem registration benefits. I hope this will prove beneficial for you in the future and if you have any queries, please feel free to ask.

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