Commodities and services which Government obtains every next year are immense and enormous: More than one-fifth of India’s GDP is created from purchases made by Central Govt, State Govt and numerous Govt departments, PSUs across India.
We are discussing about a market size of around Rs.60,000 crore here when it comes to Govt acquisition.
Untimely, the whole procedure of Govt acquisition was astounded, disseminated, and without any focal point. Whatsoever Govt department wanted to acquire any commodities or services, they utilized to declare tenders at their local level. This conduct to an unnecessary detain, poor quality of acquisition, and a disperse system with escape clauses.
In 2020, Govt announces that the Rs 20,000 crore virtue of the Govt acquisition happened along with the GeM portals, and this demonstrates to be revolutionary.
In this artifact, we will share what is Government e-Marketplace, and what is the GeM Registration Procedure for business. Apart from, we will share the complete economics and constructing a scheme of Govt, together with the GeM registration fee and many more
Government e-Marketplace (GeM) is an online manifesto for public acquisition of commodities and services by central and state government corporations. The purchases through GeM by Government users have been approved and made obligatory by the Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules and Regulations, 2017.
What kind of business profile is it? Is it a resistant, company, possession, trust or any society?
Name of the registered business and the other related documents.
Aadhaar card and PAN card of the user (obligatory requirement).
Mobile number of the registered business.
Legal papers like ITR, PAN, UAM, CIN, DIPP, ITR.
To act as a distributor, an Authorized letter (From OEM) is needed for a particular category of products.
OEM’s are intimated into 5 Types:
- Brand Owners & Third-Party Manufacturing
- Dealer & Authorized Sellers
- Service Provider
Step 1. ID Creating & Profile completion
Step 2. Aspirant can be a Reseller or an OEM
Step 3. Manufacturers are required to go by the VENDOR ASSESSMENT PROCESS to get the OEM certification
Step 4. Once a aspirant is registered as a Reseller or as an OEM then outcome Listing is required
Step 5.Products are on acceptance mode from the GEM admin department
To be clear, there is no registration fees for sellers. The GEM registration procedure is completely free for all sellers and business
Although, effective June 1st, 2020, the Government of India has introduced a monetization policy within GEM portals, which is relevant to all the sellers.
This is how it runs:
Once a seller bisects all Seller Merchandise Values (SMV) of Rs.20 lakh in a year, then now they will be needed to pay a lapsed fee of Rs.10,000 to stay agile on the GEM portal as a seller.
In case a seller has hitherto outreached the SMV of Rs.20 lakh, then a proceedings charge will be imposed on all orders of Rs.5 lakh or more values. It will turn on the value of the commodities and services being provided.
In case the value of the order is between Rs.5 lakh to Rs.50 crores, then a 0.5% undertaking fee will be charged from the sellers.
If the value of order is between Rs.50 crore and less than Rs.100 crore, then 0.5% is charged for Rs.50 crore (which is around Rs.25 lakh) + 0.4% for next Rs.50 crore (which is around Rs.20 lakh) + 0.3% charges of value above Rs.100 crore of commodities.
If the value of order is more than Rs.200 crore, then 0.5% is charged for Rs.50 crore (which is Rs 25 lakh) + 0.4% for next Rs.50 crore (which is Rs.20 lakh) + 0.3% charges for the next Rs.100 crore (which is around Rs.30 lakh) + 0.2% of order value above Rs.200 crore.
Complete ingress to a concentrated, national acquirement portal. This means an enormous increase in business golden opportunities, all across India.
Specific quotas and advantages for MSMEs, and creation with assertive procurement in some other categories.
No paperwork is required as it’s a completely online process.
East brand remembrance and brand acceptance procedure.
A vigorous online disservice amends system for all sellers and product buyers.
Easy to use the dashboard to prefect sales, and analyzes the current.
Sellers from NE states and J&K are excused from ITR filings as well
Vigorous pricing will pivot on the market conditions and dictate supply ratio
Registration on GEM is an absolute online procedure. After all, GeM is an egress for both buyers and sellers, the attestation and registration are also different. Now let’s take a view at the deeds one should be ready with while registering as a buyer and then we will appreciate the same for the sellers as well.
Documents needed for GeM registration as a Buyer
Only the head of the department can register as a buyer on the GeM portal. The following documents are required for register yourself as a buyer:
- Government email ID (ideally nomination based)
- Aadhaar card number
- Mobile number by which your Aadhaar is linked
Documents needed for GeM registration as a Seller
- Pan card
- IDENTITY PROOF.
- VAT/ TIN NUMBER
- UDYOG ADHAR or COMPANY REGISTRATION or LLP NEEDS
- BANK ACCOUNT & SUPPORTING KYC DOCUMENT.
- CANCELLED CHEQUE
- ADDRESS PROOF
Vendor Assessment is represent to ascertain the standard of outcome or service. The evaluation will be put into GeM ratings and then the product will be delegated corroborate, which is a clarified parameter that the buyer may uses in their selection procedure. This will assist buyers to make good resolution.
It is a need for all GeM sellers. Vendor Assessment, which is essential for some vendors, is one feature of vendor attestation. A seller must first registered on the GeM portal, then record products and then set up an OEM to assert possession of the product and services they provide.
From August 1, 2017, it was made essential to get a Vendor Assessment of the company’s profile and the outcomes that are registered on GeM for offering. It is an dominant step for assessing the recommendation and quality standards of the seller.
Candidate can list their marque on the GeM portal easily whether:
- Trademark registered
- Brand holder but emblem not registered
- Unbranded outcomes