Indian Government vs. Big Corporations: The Battle for Fair Markets

 

  

 

What is GeM?

Government e Marketplace (GeM) is a revolutionary online procurement platform established by the Government of India to enhance transparency, efficiency, and speed in public procurement. Launched in 2016 under the Ministry of Commerce and Industry, GeM serves as a one-stop solution for government buyers and sellers, streamlining the procurement process.

 

 

 

 

Benefits of Registering on GeM

For Sellers:

1. Increased Visibility: Get access to government buyers across India.
2. Ease of Business Transactions: Digitalized procurement eliminates intermediaries.
3. Fair and Competitive Pricing: Reverse auctions and competitive bidding ensure the best market prices.
4. Guaranteed Payments: Integrated payment systems ensure faster processing and reduced financial risks.
5. Support for MSMEs and Startups: Exclusive benefits for Micro, Small, and Medium Enterprises (MSMEs) and startups.

For Buyers:

1. Diverse Product & Service Catalog: Choose from verified suppliers offering a wide range of products and services.
2. Cost-Effective Procurement: Competitive pricing saves government expenses.
3. Fully Automated System: Reduces paperwork and manual intervention.
4. Enhanced Transparency: Maintains an audit trail for accountability and compliance.

Fees Associated with GeM Registration

GeM registration comes with various fee structures depending on the seller's business size and transaction volume:

1. Registration Fees: Free for basic registration.
2. Transaction Charges: Levied based on order value and annual turnover.
3. Annual Subscription Fees: Applied to high-volume sellers.
4. Bid Participation Fees: Certain tenders may require bidding fees.

 Caution money deposit fees - Caution money on GeM is a one-time deposit that sellers and buyers on the government e-Marketplace(GeM) must make. 

Why is caution money required?       

• To ensure sellers behave responsibly
• To protect buyers from scams and broken promises

• Seller turnover less than 1 crore: Rs 5,000
• Seller turnover between 1 crore and 10 crores: Rs 10,000
• Seller turnover more than 10 crores: Rs 25,000

Step-by-Step GeM Registration Procedure

For Sole Proprietor Service Providers:

1. Visit the GeM Portal: Access GeM Official Website and click “Sign Up.”
2. Choose Your Role: Select ‘Seller’ and proceed.
3. Enter Business Information: Provide PAN, GSTIN (if applicable), and banking details.
4. Upload Required Documents:
• PAN Card of the proprietor
• Aadhaar Card of the proprietor
• GST Registration (if applicable)
• Udyam Registration (for MSMEs, if applicable)
• Bank account details with canceled cheque
• Business address proof
5. Complete Verification: After approval, sellers can start listing services and receiving orders.

For Other Sellers:

1. Sign Up on GeM: Register at GeM Official Website.
2. Choose ‘Seller’ Role: Proceed with registration.
3. Provide Business Details: Enter PAN, GSTIN, and bank account information.
4. Submit Documents: Upload business registration certificates, financial records, and authorized signatory details.
5. Approval Process: Once verified, sellers can begin listing their products and services.

For Buyers:

1. Eligibility: Only authorized government officials can register.
2. Create an Account: Use official government credentials.
3. Procurement Process: Post requirements, compare prices, and place secure orders.

 

Who is Eligible for GeM Registration 

To be eligible for registration on the Government e-Marketplace (GeM), you must meet the following criteria: 
1. Be a legal business entity in India
2. Have a valid PAN card 
3. Have a GST registration certificate 
4. Have a Udyog Adhaar, also known as an MSME certificate 
5. Have a cancelled cheque copy for bank details 
6. Comply with applicable laws and regulations 
7. Be engaged in selling goods or services relevant to GeM categories

Who is Not Eligible for GeM Registration?

 

 

• Unregistered Individuals: Sole proprietors without a valid business registration.
• Entities Without GSTIN: Unless in an exempted category.
• Foreign Vendors: Only businesses registered in India are allowed.
• Blacklisted Companies: Organizations banned by government agencies are ineligible.

Conclusion

GeM is transforming public procurement by ensuring transparency, efficiency, and accessibility. Registering on GeM offers significant benefits for both sellers and buyers, enabling businesses to tap into a vast government marketplace. If you are a business owner looking for growth opportunities, GeM registration is a must for expanding your reach and securing government contracts.

Stay ahead in public procurement—Register on GeM today! 

Contact Now to get registered today 9870119573/9716235454