Government E-Marketplace or GeM is a portal to facilitate online procurement of goods and services required by various government departments, organizations and public sector undertakings in India. The Government E-Marketplace has been introduced to enhance transparency in government purchases, improve efficiency and speedup procurement.
Government E-Marketplace was created based on the recommendations of Group of Secretaries made to Hon’ble Prime Minister. Currently, the Directorate General of Supplies and Disposals along with the National e-Governance Division (NeGD) under Ministry of Electronics & Information Technology (MeitY) has created and piloted the Government E-Marketplace. In the first stage, the pilot project for GeM is opened for Central Government Departments and CPSUs located in Delhi / NCR. Based on the learnings, the portal will be rolled-out to other parts of the country. Further, after comprehensive study through a consultant followed by engaging a Managed Service Provider (MSP), a full-fledged version of GeM is likely to be positioned by March, 2017. Purchases through GeM by Government users has already been authorized by Ministry of Finance by adding a new Rule No. 141-A in the General Financial Rules, 2005.
Currently, the following products and services are sold on the Government E-Marketplace:
In addition to the above products, services like transportation services are also being currently tested on the Government E-Marketplace.
Authorized representatives of Central Government Departments, State Government Department, Public Sector Undertakings and Autonomous bodies can purchase through the Government E-Marketplace or GeM. The Directorate General of Supplies and Disposals has authorized officers of the rank of Joint Secretary and equivalent for purchasing through GeM. Further, authorized officers can further authorize other officers of their Department to purchase on the Government Marketplace portal. For a Government officer to be registered as a buyer on the Government E-Marketplace, the following details are required:
Any authorized officer making a purchase of up to Rs.50000/- can purchase a product through any of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period. In case of purchase above Rs.50, 000, the Government office must choose the supplier having lowest price amongst the available suppliers on the GeM, meeting the requisite quality, specification and delivery period. GeM has also provided tools for online bidding and online reverse auction which can be used by the purchaser.
Any sellers who manufacturers or markets genuine products or delivers services can become a seller on the Government E-Marketplace. Sellers on the Government E-Marketplace must have the following documents to be registered:
Process
The process for registration is simple and once registered, a GeM user id and password is provided to access the seller account. Through the seller account, the seller or service provider can list the products or services offered by them along with the pricing. The seller is free to set the price of the product as per his/her costing. But its important to include in the final price, the cost for logistics, packing & taxes, duties etc. along with a suitable margin to arrive at the Selling Price on all-inclusive basis, indicating percentage of Excise Duty, Service Tax & CST/VAT as applicable, with delivery at site basis.
Order Management
After completing seller registration and listing, the seller will start receiving orders through the seller dashboard. Wherever a customer places an order, GeM will send you an e-mail alert and orders can be managed through the GeM portal itself. After receiving the order, it’s the sellers responsibility to pack the item and deliver it to the buyer on-time. It is the seller’s responsibility to deliver the products safely to the consignee.
Payment Settlement
Payment for the goods or services purchase through the Government E-Marketplace will be made directly to the seller’s bank account through online banking within 10 days after receipt and acceptance of the goods or services or after expiry of 10 days time prescribed for return policy.
Only authorized representatives of central government departments, state government department, public sector undertakings and autonomous bodies can purchase via portal. The directorate general of supplies and disposals has authorized officers of the rank of joint secretary and equivalent for purchasing through GeM. Further, authorized officers can further authorize other officers of their department to purchase on this portal. For a government officer to be registered as a buyer following details are required:
Government of India is one of the largest purchaser of goods and services in India, spending lakhs of crores. However, most SMEs and Startups in India have been unable to sell to the Government due to cumbersome procedures and delays in payment. The Government E-Marketplace or GeM aims at disrupting the current system and introducing a clean and efficient mechanism for Government purchases. Hence, its important for all businesses to be registered on the Government E-Marketplace and make the Government a customer. The following are some of the additional benefits of being a seller on the Government E-Marketplace:
Q. Is it safe to sell or buy goods through this portal?
GeM is a completely secure platform and all the information with documents on GeM is signed electronically at numerous phases by the buyers and sellers.
Q. Is it beneficial for vendors to sell the products through this portal?
It is very much beneficial for selling and buying goods through this portal without any mediator directly to government.
Q. Is it profitable for small vendors to sale and purchase through this portal?
As there could be chances that the prices offered and selected by the government department could be lesser than that of the market price, but think about the bulk quantities being ordered by the department.
Q. Do GeM startup runway is required to have DPIIT recognition?
Yes, only DPIIT recognized startups can register on GeM startup runway. However you can attend the workshop and apply to get assistance in recognition as a startup and registration on GeM.
Q. What is the meaning of public procurement?
Public procurement is a government tenders in which central government, state government and public sector undertaking the purchase of goods and services from the private sectors.
Q. What is the object of GeM?
The object of GeM is to simplify the process of obtaining the goods and services that are commonly used.
For more information on this visit www.taxaj.com
Posted by Pooja
Team Taxaj