In recent years, the Government of India has been employing numerous steps when it comes to digitization of various sectors, including the procurement sector.
One such great initiative is the government e marketplace platform or GeM portal – a one stop shop for different goods & services procured by government organizations throughout the country.
In this piece, we will help you understand what is the GeM and how the portal is useful for in India!
What is the GeM?
In Business GeM portal full form is Government e-marketplace platform , was launched by the Ministry of Commerce and Industry on August 9, 2016. It has emerged as a game changer when it comes to public procurement in India. What is truly impressive is the kind of impact it has had on small and medium-sized enterprises (SMEs) and startups in India.
The platform has simplified procurement for government organizations who can now locate suppliers of services and products via an interactive online platform.
Similarly, the platform provides a seamless opportunity for manufacturers, small business owners and service providers to interact with government organizations who are willing to procure their products.
SMEs often face difficulties obtaining government tenders owing to extensive paperwork. However, with this portal, they get an opportunity to showcase their products and services to a wide range of government organizations. There are many government schemes helping woman business owners to grow this SMEs.
The objective of launching this platform was to establish a transparent portal for the buyers and sellers to carry out procurement activities fairly.
GeM is open to all public sector undertakings, government departments, among other organizations. As of February 1, 2023, the GeM portal has achieved a staggering 1.5 lakh crore of GMV in FY 2023.
How The GeM Portal Has Made It Easy For Small Businesses
In the beginning, GeM was set up to assist Government officials to purchase everyday items like heaters, writing equipment etc. Now, it supports all Government purchases and public procurement by Government agencies. If you’re wondering why GeM, read on!
Government officials used to face a difficult time keeping track of numerous manufacturers and producers. With the GeM portal, the procurement processes have become more convenient.
Here are several other ways how it has benefitted MSMEs.
- Reduced multiple levels of verification and decision-making, leading to reductions in lead time in procurement process
- For independent MSMEs, attractive possibilities have opened up, like prompt online payment, as intermediaries have been eliminated
- Wider market access for MSMEs, thus expanding potential suppliers and opening possibilities of reaching a broader customer base
- Secure employment and create more jobs for MSMEs, thereby supporting growth of MSME sector
Have a look on the key highlights for MSMEs in Budget 2024
Benefits of GeM
In addition to making government procurement more transparent across all sectors, here are some other benefits of the GeM portal in India.
- Highly secure: GeM online marketplace is an absolutely secure platform that runs rigoro
- us checks. The Government authorizes and verifies the documents of all suppliers on the platform.
- Fully automated system: The development of a fully automated system helps enhance efficiency and accuracy in operations. All of this has been possible with advancements in technology.
- Excellent value for money: With average prices lowered by 15 to 20% and up to 56% in some cases, GeM offers great value for money.
- No registration fee: Businesses can register on the GeM platform free of charge. For registration on GeM portal, businesses need to fill up and submit a simple online registration form, making it accessible to businesses of all sizes.
- Inclusive opportunities: GeM online marketplace allows MSMEs to register, bid and receive preferences in line with relevant procurement policies. Also know how to register as MSME in India.
Registration on GeM Portal
Read on to know the GeM registration online process for MSMEs.
Step 1: Create your seller account on the GeM portal.
Step 2: Update organization profile which includes company details, PAN Card validation, office location, bank account details, etc. Also know more about e PAN Card.
Step 3: Apply for vendor assessment on GeM to get the original equipment manufacturer (OEM) certificate.
Step 4: After becoming an OEM on GeM, vendors can start to list brands in their respective categories of products and services.
Step 5: After brand listing, list your products on the GeM marketplace.
Step 6: Participate in bids, interact with buyers, and accept online orders on GeM. It’s that simple!
Documents Required For GeM Registration Online
Some of the mandatory documents required for registering on GeM portal are as follows:
- PAN Card
- MSME certificate or Udyog Aadhaar (for businesses who haven’t been registered as MSMEs yet)
- GST registration certificate
- Mobile No and Email ID
- Canceled cheque
- Other supporting documents like product list, etc, if required
GeM portal registration of MSMEs via Udyam Portal
Steps for GeM portal registration of MSME via Udyam Portal
Step 1:
Visit udyamregistration.gov.in. and click on ”For new entrepreneurs who are not registered yet as MSME or those with EM-II.” In case you want to transition from UAM, select ‘For those already having registration as UAM And If you are new than register on Udyam.’
Step 2:
As a next step, enter your Aadhaar Number for GeM login and click on validate it with an OTP. This is for Aadhaar verification with the help of OTP.
Remember that Aadhaar verification varies for different types of organizations. Proprietorship firms, partnerships, LLP etc have specific Aadhaar verification criteria.
Step 3:
Enter the required OTP and click on verification. Once you have logged in GeM and Aadhaar verification process is complete, enter your PAN details for validation. Once verified, click on continue. Thereafter, progress to the detailed information section, which comprises 27 pointers seeking different information about your business.
Step 4:
Point Number 22 would check your interest in registering on the GeM portal, wherein, you will have to click on the Yes option.
Step 5:
At this point, you can also opt for a simultaneous registration process on other Government portals for MSMEs such as NSIC B2B.
Lastly, click on submit to receive the final OTP after filling the form. After successful registration, you will receive a confirmation message on your registered EMail ID/ phone number.
Moving forwards have a quick look on the benefits of GeM portal.
GeM Advantages For Buyers
- Provides comprehensive product listings across various categories of Goods and Services
- Offers search, comparison, selection, and purchase options
- Facilitates online purchasing of Goods and Services on demand
- Promotes transparent and user-friendly purchasing processes
- Maintains a continuous vendor rating system
- Features an updated and easy-to-use dashboard for purchasing, monitoring supplies, and managing payments
- Offers a hassle-free return policy
Advantages of GeM for Sellers:
- Direct access to all Government departments.
- Streamlined marketing efforts with a one-stop shop.
- Convenient platform for bids and reverse auctions on products and services.
- Opportunity for sellers to suggest new products.
- Dynamic pricing allows adjustments based on market conditions.
- Seller-friendly dashboard for easy selling, supply monitoring, and payment tracking.
- Ensures consistent and uniform purchase procedures across the platform.
Takeaway
The success of GeM can be tracked with these impressive statistics – As of Feb 2023, 13,18,192 sellers registered in the Government e-Marketplace (GeM) to sell their products directly to various Government departments and organizations.
Furthermore, The government expanded the scope of GeM to include services such as transportation, logistics, and consulting. To conclude, the GeM portal is a great example on how technology can revolutionize the public procurement process in India.
Over the past few years, GeM has legit transformed the procurement landscape, and going forward, it strives to continue making a significant impact in this direction.
FAQs
How startups can do GeM registration?
When registering on GeM, you have the option to designate your organization as a startup. To do so, you’ll be prompted to input your DIPP (Department for Promotion of Industry and Internal Trade) number along with the mobile number associated with it.
What are the benefits of registering as MSME?
All government purchasers are required to procure a specific percentage of goods from Micro, Small, and Medium Enterprises (MSMEs) annually. Therefore, being registered as an MSME grants you the advantage of increased sales opportunities within the government sector.
What are the benefits of GeM for Buyers?
- Extensive array of products categorized by Goods/Services types.
- Effortless searching, comparing, selecting, and purchasing.
- Convenient online shopping for Goods and Services whenever needed.
- Transparent and simplified purchasing process.
- Ongoing evaluation system for vendors.
- Accessible dashboard for purchasing and overseeing supplies and payments.
- Straightforward return policy.
What is the GeM registration fees?
Here is the list of GeM Portal Registration fees
- Caution money deposit fees
- Seller Turnover Less Than 1Cr – Rs 5000
- Seller Turnover Between 1Cr to 10 Cr – Rs 10,000
- Seller Turnover More Than 10 Cr – Rs 25,000
- Vendor Assessment Fees – Rs 11,200 + GST
How to vendor assessment on GeM?
Go to the ‘My Actions’ tab and choose “Vendor Assessment.”
- If you qualify for any of the Exemption categories, you’ll move forward with the “Assessment Exemption Documents” and “Assessment Exemptions” tabs.
- If you don’t qualify for any exemptions, you’ll go to the “Assessments” tab instead.
Q Is Make in India Certificate is important in GeM Registration?
Yes, the Make in India Certificate can be important for GeM (Government e-Marketplace) Registration. It helps businesses show that they are promoting local manufacturing and products. While it may not be mandatory for all vendors, having this certificate can give you certain benefits, such as:
- Preference in government procurement: Government buyers often prioritize goods and services made in India.
- Better visibility: It can improve your chances of getting listed and selected for tenders where locally made products are preferred.