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April 22, 2020

Online Process to register your Business or Service in Government e-Marketplace (GeM)

by facelesscompliance in Compliance Law

Online Process to register your Business or Service in  Government e-Marketplace (GeM)

Government e-Marketplace (GeM) is a government run e-commerce portal.  GeM is a one stop online National Public Procurement Portal for all government organizations. The platform provides opportunities for businesses of all sizes to sell their goods and services to government buyers across the country. The government under the Allocation of Business Rules, 1961 had begun the GeM in 2017. The main objective of the GeM is to ensure transparency, efficiency and promptness in the procurement of supplies

GeM shall cover the entire procurement process right from vendor registration to order fulfillment and payment. GeM ensures to enhance transparency and efficiency in the procurement process. It is a trust-based system with minimal manual intervention. GeM was initiated in order to bring refoem and consistency in public procurement process and remove the existing malpractices due to buyer- supplier interaction.

The statistics of Government E market place as on 22nd April 2020 is as follows

ParticularsStatistics
Buyer organizations44,704 buyers
Sellers and service providers3,63,667 sellers and service providers
Product categories5,986 products
Service categories118 service categories
No of products registered21,27,676 products
No of services offered25,539 services
No of orders till date38,67,008 orders
Transaction value of orderRs. 51,840 Crore
MSE Sellers and service providers86,029 MSE sellers and service providers

Benefits of Registration of your Business or Service in GeM

GeM offers a number of advantages to sellers. Some of the benefit are listed as under:

  1. Papaerless, contactless and Cashless registration.
  2. Direct access to over 43,000 buyers’ organizations including Central government buyers, PSUs, all states and UTs.
  3. No middleman- sell directly to the government
  4. Timely payments
  5. Timely delivery acceptance
  6. No more searching for tender notices in papers and magazines
  7. Minimal marketing efforts and expense
  8. Approximately 45% of contacts on GeM have been awarded to MSMEs.
  9. One stop shop for bids/ tenders of all products/ services procured by huge numbers of government buyers
  10. Dynamic pricing allows MSEs to change price based on market conditions
  11. Freedom from product registration
  12. GeM portal has API integration with Udyog Aadhaar, sellers can validate their MSME status through Udyog Aadhar without the need to upload or submit any proof to any authority in GeM
  13. GeM portal is working with MSME ministry for ensuring that items reserved for MSE are mandatorily procured from MSEs only.
  14. Minimal Manual intervention
  15. Transparency and efficiency in procurement process
  16. Provide optimal value for money to the registered user
  17. Helps encourage small business units /individuals to do business with the government
  18. Increase access for procurement like broader outreach, wider variety of goods and services

Details and Documents required before for registering on GeM portal:

The following are the details required for registration on GeM portal:

1. Constitution Type such as Proprietorship, Firm, Company, Trust or Society and Central Government/State Government.

2. Constitution Name.

3. Aadhaar Number or Personal PAN of the user (Authorized signatory of ITR)

4. For Aadhaar based registrations, mobile number which is linked with the Aadhaar is required.

5. Active mobile number and email id.

Procedure for registration on Government e market place:

Step 1: Go to https://gem.gov.in/

Under sign up tab select “Seller”

It will redirect to terms and condition page.

Step 2: Accept the terms and conditions and fill the details:

  • The terms and conditions check box will not appear until the Review terms and conditions button is clicked. First click on “Review terms and conditions button” it will open a “Terms and conditions”

Step 3: Fill the details:

 After above action the terms and conditions check box will appear accept the terms and conditions and fill the below details:

  • Constitution type i.e. Proprietor
    1. Constitution Name
    2. Choose your registration type, whether through PAN or Aadhaar
    3. Enter PAN in case of PAN details to be entered or Aadhaar details in case of Aadhaar details to be entered
    4. Enter Name as per PAN or Aadhaar and Date of birth as per PAN or Aadhaar card
    5. Enter mobile no of the authorized signatory and verify the mobile no by reentering once again and click on “Send OTP” button
    6. You will receive OTP on above mobile no, now enter the OTP and click on “Verify OTP”
    7. Now enter the mail id and verify the mail id through OTP as done above
    8. After verifying the mail and mobile number enter the desired user id and password

Now click on “Create account button”

After above step your profile is successfully created on Government e marketplace.

FAQs relating Sellers after creation of profile on GeM portal:

A. Profile Validations

1. What should I do, when “Key Person” validation fails?

Ans. “Key Person” validation fails, when user’s “Aadhaar Name” & “Name of Authorized person in the Income Tax Return(ITR)”are different e.g. If “Aadhaar Name” used during registration is Mr. A and Company/ Firm ITR signing Authority’s Name is Mr. B, then validation will fail. As per GEM rules, both names should be same.

2. What should I do, if some other person’s name is mentioned in the Company/ Firm ITR?

Ans. There is an option in Seller Profile to “Update Aadhaar”; User can update Aadhaar details of ITR authorized signatory & his/her mobile number, which is linked with Aadhaar & Verify. Once new Aadhaar is updated, “Key Person” validation may be performed again. On Aadhaar update, PAN Validation has to be reverified.

3. What should I do in case I get error of Office Locations’ mismatch?

Ans. Your Office Locations’ address should be same as the address mentioned in Income Tax Return (ITR). To rectify this error, the mandatory fields in the address are to be updated as per the address mentioned in Income Tax Return (ITR).

4. What should I do if I am not able to update profile due to “MSE Verification” failure?

Ans. This happens, when your UAM number has not been validated. To rectify this error, you will have to click on the checkbox “Are you registered with MSME?”, enter UAM number then provide Mobile number / Aadhaar number ( registered with UAM at the time of applying MSME).

5. How to make a “Bank Account Number” as “Primary” for receiving payments?

Ans. The seller can provide multiple Bank Account Numbers but only one can be marked as “Primary” by clicking on the corresponding checkbox labeled “Is Primary Account”. This Bank Account will be used for receiving payments once verified by PFMS.

6. How can I rectify my organisation “Constitution Type”?

Ans. To change “Constitution Type” of your organisation, you need to visit “My Account” and click on Change Constitution Type. Kindly note that Change Constitution Type is allowed only once. On updation of Constitution Type, all the verification will have to be done again to complete your Profile.

7. What should I do, when “PAN Validation” fails?

Ans. “PAN Validation” fails when user’s “Aadhaar Name” & “Name of Authorized person in the Income Tax Return(ITR)”are different e.g. If “Aadhaar Name” used during registration is Mr. A and Company/ Firm ITR signing Authority’s Name is Mr. B, then validation will fail. As per GEM rules, both names should be same.

B. Tax Validations

1. What should I do, when Tax Validation is failing?

Ans. Tax validation failures are attributed to mismatch in data provided to GeM and that present in your ITR.

Cases further differ basis constitution type and ITR type.

  • For ITR6, ITR5, ITR4s and ITR3 “Profit and Gain” and “Sale / Gross Receipts of business” sections need to match with ITR.
  • For ITR4 “Profit and Gain” and “Business and Profession” needs to match with ITR.

2. What should I do Tax Validation is failing for ITR6?

Ans. For ITR6, we would suggest the user to fill the details as follows:

  • Fill “Profit and Gain” from Section “Part B – T1 “Computation of Total Income” Point number 2 (vi) [Total] of ITR.
  • For “Sale / Gross Receipts of business”, fill the details from Part A of Section “Profit and Loss Account” Point number 1 “Revenue from Operations” A (vi) [Total] of ITR. Onward assessment year 2017-18 If you are maintaining your books of account as per indian accounting standards then you need to select the provided option accordingly.

3. What should I do Tax Validation is failing for ITR5, ITR4s or ITR3?

Ans. If the ITR type is ITR5, ITR4s or ITR3, we would suggest the user to fill the details as follows:

  • Fill “Profit and Gain” from ITR Section “Part B – T1. “Computation of Total Income” Point number 2 (v) [Total] of ITR
  • For “Sale / Gross Receipts of business”, fill the details from Section “Profit and Loss Account” Point number 1 “Revenue from Operations” A (iv) [Total] of ITR.

4. What should I do Tax Validation is failing for ITR4?

Ans. If the ITR type is ITR4, we would suggest the user to fill the details as follows:

  • Fill “Profit and Gain” section from ITR Section “Part B – T1. “Computation of Total Income” Point number 2 (v) [Total] of ITR.
  • Fill the “Business and Profession” section amount from “E1a and E1b” in the ITR.

5. What should a seller do if the published bid has concessional rate of GST mentioned?

Ans. The seller should quote the final price after taking into account the concessional rate of GST while participating in the Bid. No revision of the price is allowed once the Bid has been opened.