Process for GeM portal registration
Before diving into the guide, it is important to know about the GeM Portal and why the need appeared. What was the idea behind this, and how would it help MSMEs and Indian manufacturing industries?
What is GeM?
GeM stands for Government e-Marketplace Portal, which has been set up to facilitate online public procurement from various vendors listed on the portal. GeM aims to enhance transparency, efficiency, and speed of procurement processes.
Why should MSMEs opt for GeM portal registration?
Sellers are required to register themselves on the portal for free. However, applicants will have to submit a caution fee and vendor evaluation fee to obtain Original Equipment Manufacturer (OEM) status. once the vendor evaluation is complete, vendors and service providers must list their brands, products, and services on the market.
Is there any benefit of having a GeM portal registration?
The Government of India is one of the largest buyers of goods from micro, small and medium industries (MSMEs) in the country through public procurement. The earlier purchase was subject to various charges and ambiguity.
Yet, since the establishment of the government e-marketplace, the allocation of tenders and bidding for procurement has been more transparent, efficient, and corruption-free.
Read: Documents Required for GeM Registration
These are the following benefits that sellers and manufacturers can get after selecting gem portal registration.
- Access to the pan-India market
- Multiple invoices for orders
- Protection against delayed payments
- Dynamic pricing based on marketers
- Participate in reverse auction or bid
- Easy access to government institutions and departments
- Benefits for vendors from North Eastern States and Jammu and Kashmir
Process of vendor registration on the GeM portal
Step 1
Create a vendor account on GeM: Creating a GeM vendor account is the primary step for manufacturers and vendors. Registration on GeM should be done only by an authorized person or the head of their respective entities.
Step-2
Updation of organizational profile: Once the creation of the vendor account is complete, applicants are required to update their organizational profile, such as PAN verification, company details, address verification, and bank account details of the organization.
Once the primary setup of the GEM profile is complete, firms must accumulate careful funds respectively according to their turnover.
GeM vendor evaluation of vendor
After depositing the commission money, sellers are required to apply for a Gem seller valuation. All sellers must apply for evaluation to participate in the public procurement of Q1 and Q2 category products.
Sellers will also have to pay an assessment fee of Rs 11,200 + GST.
Evaluation is done by QCI in 2 phases.
- Desktop Evaluation: Vendors are required to submit mandatory documents in this process. Quality Control of India (QCI) verifies the data and documents. The aim is to understand the process, such as the manufacturing/manufacturing of the unit. Assembling processes, policies, functions, and performance.
- Video Evaluation: Once the desktop evaluation is complete. QCI proceeds to validate the information through video evaluation. QCI’s auditor operates it through a mobile-based app.
The seller needs to pass this step to get their OEM status to list their brand on the GeM portal for public procurement.
List of brands on the GeM portal
Once the evaluation process is complete, all vendors will have to list their brands and products on the portal. Listing the brand is an important step as it provides an edge to MSMEs.
Brands can be listed as follows:
- Trademark Registered
- Own the brand but not registered under the trademark
- Unbranded
List of products and services on GeM
Once the brand listing is complete. Sellers and service providers are required to clearly list their products and service on the government e-marketplace (GeM portal). Once the products are listed on the portal they will go live for public purchase.
Steps to list products on the GeM portal
Step-1: Basic information about the product such as:
- Product Category and Sub-Category
- Product Name
- Product Details
- Brand of product
- Product Model
- HSN number and SKU ID
Step-2: Product Availability/Availability Quantity:
Sellers are required to provide information about the availability or quantity of the product.
This will help government buyers place orders and make their purchases as per availability and requirement.
Step-3: Products/Products Pricing of service:
Sellers on the Government e-Marketplace/GeM portal will have to provide their pricing details as per the guidelines asked.
- Maximum Retail Price (MRP) of the product
- The price including all taxes was offered on the GeM portal by the authorized GEM vendor. (The proposed price should be at least 10% lower than the MRP)
Step-4: Description of products:
- Form
- Height
- Weight
- Dimension
- Quality
- Color
- Utility
Sellers can also provide additional details about their products if necessary.
Step-5: Illustrated representation of the products listed on GeM:
Sellers are required to upload a clear picture of their product on the portal. The image should give a clear view of the product. This will help buyers identify the product before purchasing.
GeM Portal Procurement Process
According to the guidelines of the General Financial Rules (GFR-149), government agencies can purchase from GeM in the following ways:
- Direct purchase: As per GFR Rule-149, government agencies can make purchases directly from the GeM portal within the limit of Rs 25,000.
- L1 Purchase: L1 purchase stands for lowest purchase. It started when the purchase order is more than Rs 25,000 but less than Rs 5,00,000. As per the said guidelines, buyers will have to select at least 3 sellers and choose the lowest proposed price
- Public procurement through tender: If the purchase order exceeds 5,00,000. In such cases, procurement is only done through public procurement/procurement through the government e-marketplace. Can be done through tender.
Business Utilities: Your GeM Portal Registration Guide
The GeM portal registration and vendor evaluation process involves various compliance and information. It is advisable to look for an expert to apply for a certificate to avoid rejection during QCI vendor evaluation for GEM.
Business utilities will help you avoid any trouble. Follow the steps below:
- Call
- Provided the required documents
- Get portal registration within 2 days except for vendor evaluation, which is subject to QCI’s evaluation process.
Conclusion
The GeM initiative provides a fair market opportunity to the micro, small and medium manufacturing and service industries.
MSMEs can benefit immensely by registering themselves on the GeM portal and be eligible to receive government tenders, bids, and purchase orders.
The bidding process on GeM is transparent and fair, providing an equal opportunity for small industries to function.