The Government eMarketplace or GeM portal is an online platform launched by the Government of India for easy procurement of goods from Indian businesses. GeM connects buyers with suitable sellers online and helps buyers make purchases from the sellers. All buyers and sellers must be registered in the GeM portal. Many buyers make direct purchase orders on GeM for easy procurement. This process is similar to customers buying products online from an e-Commerce platform like Flipkart. Once the orders are placed, the seller gets a notification of the GeM purchase order which he/she can choose to accept or reject after checking whether the consignment is relevant.
What is a direct purchase order on GeM?
Direct purchase enables a buyer to buy products/services of value up to ₹25000 which meet the requisite quality, specifications and delivery period through any of the available sellers on GeM.
How to get orders on GeM portal?
If you are an MSME trying to get direct purchase orders on the GeM portal, note that the portal works like most e-Commerce platforms, for instance, IndiaMART. The buyer logs in to his registered GeM account, searches for the product he/she requires and then clicks on place order.
For example, you are a GeM registered business selling sensors. The aerospace department has a requirement of 100 sensors and wants to source the devices from local businesses. The department logs into its GeM account and starts searching for sensors. The search result will feature many companies selling different types of sensors. The department, according to its preferences and budget, will choose a company and place the order. The company chosen for the consignment will then get a notification of the purchase order.
The above process briefly describes how to place a direct order on GeM.
Where do the purchase order notifications appear on GeM?
If you are a seller on GeM who has already uploaded products/services on the portal, there are high chances of you getting direct purchase orders from the government. These purchase orders appear as notifications in your GeM account. You can view this by clicking on the orders tab on the home page. This will take you to a page that will show you the purchase orders that your company has received.
You can choose to accept or reject these orders as sometimes these orders might not be relevant to your company’s products. Once you accept it you will have to fill in information about the consignment. After accepting the order, click on the view details. Under the view details you will be able to fill in details of the consignment along with the tax incurred on the purchase order and generate an invoice for the consignee.
How to accept purchase order notifications on GeM?
- Click on order tab on GeM homepage
- Accept the order by clicking on accept button
- Click on the view details tab and fill in the required details
- Tap on generate to generate the consignee bill
Things you should know about direct purchase orders on GeM
- Direct purchase on GeM limit:
Buyers can only place direct orders on GeM if the order price is below ₹25000. For orders between ₹25000 and ₹500000 a comparative sheet is prepared by selecting 3 different OEMs. If the total value of consignment is more than ₹500000 (5 lakh rupees) buyers are mandated to follow bidding or Reverse Auction (RA) to make the purchase.
- Ensure you get a direct purchase order:
When you upload products during the creation of your GeM account you need to make sure that you select the right category and sub-category. Sometimes, companies enter the wrong category and fail to get direct purchase orders that are relevant to them. To avoid this, once you register on GeM go to the homepage, click on categories and check the products and sub-categories listed there. This will give you a better idea of the exact categorisation of your product.
- Create a new category:
If you don’t find the category to classify your offering, you can request the GeM team to create a new category for you.
To add a new product/service:
Go to homepage >> Catalogue>> Products/Services>> Add a new offering
This will take you to a page which will display a form for categorising your product. If you scroll down, you will be able to see an option saying: “Can’t find a suitable category? Click here to submit a request for creation of a new category or to suggest changes in an existing category.”
Choosing this option will help you request GeM portal to create a new category applicable to your offering.
- Failure to receive acknowledgement to accepted orders:
When you have accepted the order and fail to receive acknowledgement of the acceptance GeM will consider such order as accepted on 21st day after the Provisional Receipt Certificate is updated by the buyer. GeM will automatically generate and issue Consignee’s Receipt and Acceptance Certificate (CRAC) as a part of acceptance process.
Direct purchase orders on the GeM portal are a great way to increase sales figures. This is not the same as being awarded a tender through the e-tendering process. Today, the GeM portal is integrated with the Central Public Procurement portal, making it convenient for bidders to find and explore tenders on the GeM portal.
Finding relevant tenders can boost profits and build your brand name. On Tata nexarc, you can explore Tenders & Quotations to help you find relevant tender opportunities to foster business growth.