Introduction to GeM Portal: What It Is and How It Works

The GeM portal full form is the Government e-Marketplace, it is India’s official online platform that makes government buying simple and transparent. The Ministry of Commerce and Industry was launched in 2016 to replace the slow, paperwork-heavy tender system with a faster, fairer digital process.

Through GeM, government departments and public sector units can purchase products and services directly from registered sellers. The platform includes helpful tools like online bidding, reverse auctions, order tracking, and digital payments. This makes the entire process seamless from start to finish.

With 10,000+ product categories and 240K+ secondary buyers, the portal has already enabled large-scale transactions and created a more competitive marketplace.

The portal also plays an important role in supporting MSMEs and promoting the government’s push toward digital governance. In this rapidly growing community of suppliers and government buyers, GeM has become a major milestone in the procurement process.

The answer to ‘what is a GeM portal used for?’ goes beyond creating a place to buy and sell. It aims to transform how the government procures goods and services. Here are the three key ideas that define its purpose:

• Transparent: GeM gives users easy access to clear, reliable information. This helps buyers quickly compare products, prices, and seller details without digging through paperwork. The platform also offers useful insights and data tools to help buyers make informed decisions and determine if the price fits the market.
• Fairness: The portal creates equal opportunities for all sellers. From small businesses and startups to large enterprises, every seller gets a chance to connect directly with government buyers. This process ensures competition remains healthy by preventing any seller from receiving special treatment or visibility.
• Inclusivity: GeM welcomes all eligible government buyers and sellers. To help new users feel confident, the platform offers onboarding support, training sessions, and ongoing guidance. By making the experience easy for everyone, GeM encourages more businesses to participate and grow.

The GeM Portal brings government buyers and trusted suppliers together on one digital platform. It is managed by the GeM Special Purpose Vehicle (GeM SPV), a non-profit company set up under the Ministry of Commerce and Industry. Their job is to build, run, and continuously improve the platform so the buying and selling process feels smooth, transparent, and efficient.

So, who actually uses the GeM Portal? There are two main groups, which are, government buyers and registered sellers. By connecting these groups digitally, GeM creates a space where the government can buy, and businesses can sell to newer demographics nationwide.

Government buyers include:

• Public Sector Undertakings (PSU)
• State government offices
• Local bodies, schools, colleges, and autonomous institutions
• Central government ministries and departments

Registered sellers include:

• Traders, dealers, and distributors
• Manufacturers and OEMs
• Startups and MSMEs looking to grow through government contracts
• Service providers like IT support, manpower agencies, and facility management companies

The GeM Portal gives government buyers numerous advantages that make purchasing smoother and more reliable. Some key benefits include:

• There is a huge variety of goods and services to choose from, so buyers can explore options before finalising a purchase.
• A transparent and easy purchasing experience, where product details, pricing, and seller information are clearly available.
• You can communicate directly with the sellers, which makes coordination smoother and faster.
• Built-in price comparison tools help you understand market trends, and you get value for money.
• You gain access to a large pool of sellers, which encourages healthy competition and better pricing.
• There are flexible bidding options, including specialised requests like Proprietary Article Certificate (PAC) purchases.
• Sellers offer more extended delivery timelines (up to 180 days) for larger or more complex orders.
• The authorities control bidding timelines. There are options to set the duration to 10 to 21 days.
• You also get quick support and grievance redressal to resolve issues without unnecessary delays.
• A clean, easy-to-use dashboard that helps you track orders, deliveries, and payments in one place.
• There is a secure, integrated payment system that simplifies financial processes.

Selling on the GeM Portal comes with several benefits that make doing business with the government smoother. Some of the advantages for sellers include:

• One platform for visibility and sales that saves time and cuts down on marketing efforts.
• You get direct reach to government buyers, so you no longer need intermediaries or constant follow-ups to get noticed.
• There is a simple, straightforward listing process without long approval cycles or complicated paperwork for product models.
• Once your products or services are listed, interested departments can contact you directly.
• The GeM portal allows you to update or upgrade products at any time, so you can list new versions as soon as they are ready.
• You have the flexibility to define your own product features rather than conform to rigid, predefined specifications.
• You get access to annual purchase plans, which help you understand what government departments plan to buy.
• There is dynamic pricing that gives you the freedom to adjust rates as market conditions, raw material costs, or exchange rates change.
• There are clear and consistent rules that make every purchase predictable and easier to manage.
• The portal helps you get timely payments, so you do not have to worry about long payment delays.

• The process must be completed by someone authorised to represent the business, such as a proprietor, partner, or director.
• You will first need basic personal details, such as your Aadhaar number with the linked mobile number or your Personal PAN.
• A working email address, either personal or official, is also required for verification and communication.
• Next comes your business information. You will be asked to select your organisation type, such as proprietorship, partnership firm, company, trust, or government entity.
• You will also need your business PAN and the date the organisation was registered. Additionally, companies need to provide their CIN number.
• You also need to provide some financial and legal documents. These include Income Tax Return details from previous years (especially if you plan to participate in bidding), your registered office address, and GST number for higher-value orders.
• You will also need to provide your bank account and IFSC code for receiving payments.
• Additional details may apply if you are registering as a startup or MSME, such as DPIIT recognition or UDYAM registration.
• Once everything is submitted and approved, you can also add team members to help manage orders, catalogues, and bids within your account.

To register as a bidder on the GeM Portal, you must meet a few basic eligibility conditions. These criteria help ensure bidders are genuine, capable, and compliant with government procurement rules:

• First, the bidder can be an individual, a proprietorship firm, a partnership firm, or a registered company, meaning both small and large businesses can participate.
• You must also have a valid PAN issued by the Income Tax Department. This is compulsory for all bidders.
• For GST, you can be registered under the regular scheme, composition scheme, or remain unregistered if your turnover qualifies for exemption. If your turnover crosses the GST threshold, registration is mandatory.
• In some cases, such as specialised services or technical contracts, additional certifications may be required. For example, a bidder may need specific accreditation or government approval, depending on the service category.
• GeM also follows the Make in India policy. This means that only Class I and Class II local suppliers are allowed in certain tenders, and preference is given to Class I suppliers

• Step 1: Go to the official GeM portal.
• Step 2: Click “Sign Up” and select “Seller.”
• Step 3: You will need to enter a few business details, such as your business or personal PAN, the authorised person's Aadhaar details, GST and Udyam/Startup registration (if applicable), and bank account details for payments. Additionally, you will also need a working email address and mobile number to receive verification messages
• Step 4: After that, create a username and password to finish the registration.
• Step 5: Once you complete these steps, log in to your dashboard and set up your profile. From there, you can add your products or services, upload certificates, and get ready to receive orders or participate in bids.

GeM is changing the way businesses and the government work together. It has levelled the playing field and given companies of all sizes, from startups to established suppliers, the chance to earn fairly and get noticed. If you consistently participate and use a smart bidding strategy, your business can generate significant revenue on this platform.

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