How GeM Portal is Usefull for MSMEs

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 registration 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 (Govt e market) and how the portal is useful for in India!

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What is the GeM Portal?

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. 

GeM PortalDetails
GeM Full FormGovernment E-Marketplace
Launched DateAugust 9, 2016
ObjectivesThe objective of the GeM portal is to streamline and enhance transparency, efficiency, and cost-effectiveness in public procurement for government departments and organizations.
BenefitsSecure, Value for money, No registration fee, Highly Efficient, Reduce corruption
UtilityMSMEs, SMEs, Manufacturers(OEM) For Buyers

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 these 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.   

Advantages of Registering on GeM Portal for Sellers:

Here are a few benefits of GeM Portal 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.

GeM Portal 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

Documents Required For GeM Registration Online

Some of the mandatory documents required for registering on the 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
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How to Register On the GeM Portal As a Seller

Read on to know the GeM portal registration process online for MSMEs. 

Step 1: Create your seller account on the GeM portal.

Step 2: Update the organization profile which includes company details, PAN Card validation, office location, bank account details, etc.

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! 

GeM Portal Registration of MSMEs via Udyam Portal

Steps for MSME GeM Portal registration online via Udyam Portal

Step 1: 

Visit udyamregistration.gov.in. and click on register on Udyam.’

Step 2:

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. 

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,

Step 6:

Now 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.

11 Gem Rules and Regulations For Sellers

Here are few important GeM rules and regulations for sellers that one needs to take care off while GeM portal registration.

  1. Registration and Verification:
    • Sellers must complete registration with accurate business and tax details. Well GST Amnesty scheme is also helpful if you are looking for filing GST Return on time.
    • PAN, Aadhaar, and GSTIN (if applicable) must be valid and up to date.
  2. Product Listing:
    • Products and services must meet prescribed quality standards and specifications.
    • Sellers must not list banned or restricted items.
  3. Pricing Rules:
    • Prices should be competitive and inclusive of all applicable taxes, duties, and freight.
    • Sellers are required to offer the lowest price available in the market.
  4. Order Fulfillment:
    • Orders must be fulfilled on time as per agreed delivery schedules.
    • Non-compliance may lead to penalties or blacklisting.
  5. Product Quality:
    • All products and services delivered must adhere to the specified standards and descriptions.
    • Poor quality or counterfeit products are strictly prohibited.
  6. Customer Support:
    • Sellers must provide after-sales service, warranty (if applicable), and resolve buyer grievances promptly.
  7. Compliance with Laws:
    • Sellers must follow all applicable laws, including labor laws, environmental laws, and tax regulations.
  8. Transaction Fee:
    • Applicable transaction fees for sales through GeM must be paid as per portal guidelines.
  9. Avoidance of Malpractices:
    • Misrepresentation, fraud, or unfair trade practices may lead to suspension or cancellation of the account.
  10. Returns and Refunds:
    • Sellers must comply with return and refund policies, ensuring buyer satisfaction.
  11. Performance Monitoring:
    • Seller performance is monitored through ratings and feedback, affecting visibility and credibility.

GeM Portal OEM Registration Process

Here are few steps for Original Equipment Manufacturer (OEM) registration on GeM.

  1. Create a GeM Seller Account:
    Register your business on the GeM portal with valid documents like PAN, GSTIN, and Aadhaar.
  2. Apply for OEM Status:
    After seller registration, apply for OEM status by providing additional documents like:
  3. Category Approval:
    Get approval for the product categories you wish to list by submitting detailed product specifications and certifications.
  4. Verification Process:
    GeM conducts a background check to verify the authenticity of the manufacturer and submitted documents.
  5. Approval and Listing:
    Upon successful verification, OEM status is granted, allowing you to list products under your brand name.

GeM Portal Registration For Small Businesses

In the beginning, GeM was set up to assist Government officials in purchasing 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 registration, the procurement processes have become more convenient. 

Here are several other ways in which 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

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 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.

Q What are the prerequisites for GEM Registration in India?

The prerequisites for GEM (Government e-Marketplace) registration in India include:

  1. Business Type: Must have a valid business entity such as proprietorship, partnership, LLP, or private/public limited company.
  2. Documents: PAN, GSTIN (if applicable), and a valid Aadhaar card of the business owner or authorized signatory.
  3. Bank Details: Active bank account with IFSC code.
  4. Udyam or MSME Registration (if applicable): For MSMEs to avail benefits.
  5. Product/Service Listing: Details and specifications of the products or services offered.
  6. Email and Mobile Number: Linked to the business owner or authorized representative for verification.

By indifi

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