How GeM Portal Works: Features, Operations and Tenders

The GeM (Government e-Marketplace) portal is an online procurement platform officially launched by the Government of India on 9th August 2016. It is operated by the Ministry of Commerce and Industry, and allows government departments (both state and central), organisations, and Public Sector Undertakings (PSUs) to buy goods and services from registered sellers.

The GeM portal replaced the existing tendering methods, intending to bring transparency, efficiency, and inclusiveness in the procurement process. It also aims to promote fairness and eliminate corruption in the system. For sellers, the online marketplace offers a single, unified platform to showcase their offerings and reach diverse buyers across multiple government departments.

The GeM portal offers a slew of features to make the government procurement process transparent, fair, and seamless. Here are the key features:

Wide Range of Products and Services

Through the GeM Portal, government agencies can browse and procure a wide range of products and services. These may include office supplies, IT hardware, vehicles, construction materials, and professional services.

Ease of Use

The GeM portal has a user-friendly interface. As a seller, you can register your products and/or services in a hassle-free manner through a few simple steps. Buyers can also easily access the platform and the available products with complete seller information.

Complete Transparency

The most prudent feature of the GeM portal is its transparency. All procurement activities are done online, which reduces the chances of corruption and ensures fair, unbiased, and rule-based procurement.

Dynamic Pricing

The GeM portal allows sellers to change the prices of their products and services based on market conditions, demand, and supply. This feature helps you stay competitive and make maximum profit.

Round the Clock Access

The GeM portal is available for access 24/7 for both buyers and sellers. It allows them to buy or sell products anytime and from anywhere, depending on their precise requirements and preferences.

Integrated Payment System

There is an integrated payment system to facilitate quick and secure online payments. This allows the buyers to pay for their purchases through any of the available online methods. The sellers, on the other hand, can register their bank accounts to receive payments seamlessly.

Ratings and Reviews

The portal allows both buyers and sellers to provide ratings and reviews on the platform. These reviews are visible to other buyers and sellers to help them make informed decisions.

Advanced Analytics

The portal is designed to use advanced analytics to provide historical price trends for products and services, order volumes, etc. This helps buyers make informed buying decisions. Whereas sellers can use the available data to determine fair prices for their offerings.

The GeM portal offers numerous benefits for both buyers and sellers. Let’s have a look at some of them:

Quick Onboarding

The onboarding process for sellers is quick, hassle-free, and completely online. All you need to do is complete a few simple steps on the portal and upload the required documents. Once you’re a listed seller, you can sell your products/services and receive payments in a hassle-free manner.

Access to a Wide Range of Buyers

Through the GeM portal, you can showcase and sell your products/services to over 1.67 lakh primary buyers and over 2.41 lakh secondary buyers. These are registered state and central government organisations and PSUs. Accessing such an expanded marketplace isn’t possible elsewhere.

Saves Time and Costs

The GeM portal has replaced the traditional method, which was time-consuming as well as costly. It ensures that you won’t have to wait for the tenders to open and place bids, without even knowing the results. Additionally, since the process is online, no administrative costs are involved.

Rule Compliance

All transactions on the GeM portal are protected under the Government of India’s Allocation of Business Rules of 1961. Furthermore, Rule 149 of the General Financial Rules (2017) makes it mandatory for all government organisations in India to procure through the GeM portal only.

The process to buy or sell through the GeM portal comprises three primary steps:

1. Registration
2. Listing of products and/or services
3. Bidding and orders

Let’s discuss each of these steps in detail to decipher how to work on the GeM portal.

Registration

The first step for “how to use the GeM portal” is registration. As a seller, you can easily complete the registration process online by visiting the official GeM website. Below are the steps you must follow:

• Step 1 - Visit the official GeM portal.

• Step 2 - Place your cursor on the “Sign Up” option in the top right corner.

• Step 3 - Click on the “Seller/Service Provider” option to register yourself as a seller on the GeM portal. If you want to register yourself as a buyer, you can click on the “Buyer Organisation” option.

• Step 4 - Select your business/organisation type. The available options are Proprietorship, Firm, Company, Trust/Society/Association of Persons, and Central/State Government.

• Step 5 - Submit the required documents. Make sure to view the prerequisites for GeM seller/service provider registration.

• Step 6 - Upon successful verification, you will become a registered seller on the GeM portal. You can now start selling your products/services to government organisations through the portal.

Listing of Products or Services

Once you’re a registered seller on the GeM portal, you can start listing your products and services. This is how you can showcase your offerings to buyers. It’s vital to understand how to operate the GeM portal as a seller for smooth operations. Here are a few tips that can help:

• Create a catalogue of your offerings using high-quality images.
• Provide all necessary details about your products or services. Make sure the details are accurate.
• The GeM portal uses the Harmonised System of Nomenclature (HSN) codes to classify products. Make sure you understand these codes and enter them accurately while listing your products or services.
• GeM lists products in predefined categories. You must list your products or services in the right category. If you can’t find it, request for a new category addition.
• Fair pricing is very important. Overpricing can reduce the chances of a sale. Whereas underpricing can impact your profit margin and revenue. You can use the advanced analytics available on the GeM portal to determine a fair pricing range for your products or services.
• Ensure compliance with the guidelines and policies of the GeM portal to avoid unnecessary penalties.

Bidding and Orders

The third and final step in the GeM procurement process is bidding and ordering. If the sale amount is less than ₹50,000, buyers can place their orders directly with the available sellers on the website.

If the order amount exceeds this threshold, online bidding or reverse auction is required. Government organisations can upload tenders on the website, and interested sellers can start bidding. Responding quickly and offering competitive quotes can increase your chances of winning a tender.

The bidding process on the portal is completely transparent. All sellers will be able to see the winner and the final bid amount. All other sellers will be given a valid reason for rejection.

As a buyer, operating the GeM portal is quite easy and seamless. First, you need to complete your buyer registration on the website by clicking on the “Sign Up” button and choosing the “Buyer Organisation” option. Then, select your role in the buyer organisation and click on the “Proceed” button to complete registration formalities.

The following types of entities can register as buyers on the GeM portal:

• Central government ministries and departments
• State government departments
• Public Sector Undertakings (PSUs)
• Autonomous government bodies and municipal authorities

Once you have completed the registration process, you can log in to your GeM buyer account to place buy orders and participate in online tendering. Here are the steps you can follow:

• Step 1 - Log in to your GeM buyer account.
• Step 2 - Search for the required products or services.
• Step 3 - Add items to your cart.
• Step 4 - If the order value is less than ₹50,000, you can place the order directly with the available seller. For a higher amount, upload a tender on the website.
• Step 5 - Respond to the bids to finalise the purchase amount and award the tender to a seller.
• Step 6 - Receive the delivery of goods or services.
• Step 7 - Release seller payment if everything is in order.

The GeM portal is designed to improve accessibility and bring inclusiveness for a wide range of buyers and sellers across the country. Some users may not be comfortable with the English language, and to help such users, the GeM portal supports 11 other languages, including Hindi, Bengali, Gujarati, Marathi, Tamil, and Telugu. You can work in any of these languages.

To change your GeM language from English to Hindi (or any other language), you can simply click on the language toolbar on the top-left corner of the Home page and select the language of your choice.

Although the GeM portal is user-friendly, you might come across certain challenges while working on it. Here are the common challenges you can face and their potential solutions:

Technical Errors

You may face certain technical issues while operating the GeM portal. For example, the site may not respond, or you may notice a discrepancy in product prices. The GeM helpdesk team is available 24/7 to solve such issues.

Category Mismatch

Category mismatch can lead to the rejection of the order. Ensure you’re selecting the correct product category at the time of listing.

Payment Delays

Since the transactions on the GeM portal are highly regulated, there are fewer possibilities of payment delays. However, it can sometimes occur due to documentation or back-end issues.

High Competition

The portal is highly competitive. Offering niche products with aggressive pricing can help you attract buyers.

The introduction of the GeM portal has transformed the way government procurement works in India. Whether you're a manufacturer, wholesaler, service provider, or a company dealing with corporate services, it provides a transparent platform to showcase your offerings to a wide range of government buyers.

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