Introduction to GEM: Government e marketplace

GeM, Government e-marketplace was launched under the ministry of commerce on August 9, 2016 as a centralised procurement platform to increase efficiency of public procurement process in India. GeM is a marketplace to facilitate the sale and purchase of goods of services by various Ministries and agencies of the Government.

GeM is an electronic platform where buyer and seller come together on a single platform that enables ease of transactions between them.

Government of India (Allocation of Business) Rules, 1961, vide notification dated 8th December 2017 has made the following entry for GeM:

“Development, operation and maintenance of National Public Procurement Portal—Government e Marketplace”.

To support GeM, Ministry of Finance added rule 149 in General Finance Rules 2017 whereby all Government users should made purchase through GeM only.

Reason behind GeM initiative:

• Need for reform to bring consistency in public procurement
• Existing malpractices in the system due to buyer-supplier interaction

Three core elements:

• Openness: GeM shall be an open marketplace wherein it promotes access to information and transparency
• Fairness: One of the platform’s key objectives is to allow sellers, big and small, to gain direct access to Government buyers
• Inclusiveness: GeM shall promote inclusiveness, which means that all Government buyers and sellers shall be accepted on the platform.

Who operates GeM?

The Government e Marketplace Special Purpose Vehicle (GeM SPV), a Section 8 (Non-Profit) Private Limited Company under the Ministry of Commerce has been incorporated under the; Companies Act, 2013 to develop, manage and maintain the GeM platform.

GeM SPV builds, operates and maintains the GeM platform, which provides an end-to-end online Marketplace for Central and State Government Ministries / Departments, Central & State Public Undertakings (CPSUs & SPSUs), Autonomous institutions and Local bodies, for procurement of common use goods & services in transparent and efficient manner.

What are the benefits to Buyer at GeM?

• Provide transparency and ease of buying
• Offers rich listing of products for individual category of goods/services
• Proprietary Article Certificate Bid- Procurement of specific product as per requirement
• Price Trends and Price Comparison From Multiple Suppliers
• Direct notifications to sellers
• Integrated Payment System
• Easy to comprehend interface to search, compare, select and buy
• User friendly dashboard for monitoring supplies and payments
• Online grievance redressal mechanism for quick resolution
• Float bid among population of 3 lakhs sellers
• Buyers can now select bid duration between 10 & 21 days.
• Delivery period upto 180 days

What are the benefits to Seller at GeM?

• Access to National Public Procurement market
• No government charges or fee for getting registered
• Special provisions and sections for startups, MSMEs and Emporium products
• Fully online, paperless and contactless platform
• Easy access to participate in bids/reverse auction
• Online grievance redressal mechanism for quick resolution
• All sellers will be shown reasons for rejection
• Seller friendly dashboard for monitoring supplies & payments
• Seller belonging to North East states and J & K are exempted from ITR at the time of bid participation
• Dynamic Pricing – Price can be changed based on market conditions
• Direct access to Government departments and their organizations.

Products listed on GeM

The goods procured by the Government range from highly standardized goods like A4 printing paper, printing cartridges to electronic goods.

Broad categories of products listed are:

1. Computers
2. Office Supplies
3. Office Machines
4. Appliances
5. Automobiles

How GEM Works?

Buyers and Sellers need to register themselves at the GeM Portal to participate in GeM transactions. Below given is the summary of GeM working available on GeM platform.

GeM is a welcome drive taken by Government of India to eliminate the disadvantages associated with physical procurement process. Parties intending to act as buyer seller must register on GeM.