Labor and products which Government gets consistently are immense and huge: More than one-fifth of India’s GDP is created from buys made by Central Govt, State Govt, and different Govt divisions, PSUs across India.
We are discussing a market size of around Rs 60,000 crore here with regards to Govt acquisition.
Prior, the whole course of Govt acquirement was stunned, appropriated, and with practically no concentration. Whichever Govt office needed to acquire any labor and products, they used to declare tenders at their nearby level. This prompted a superfluous deferral, low quality of acquisition, and a decentralized framework with escape clauses.
To stop this, the Govt of India sent off GeM or Government eMarketplace in 2016, which incorporated the whole acquisition process by various Govt divisions and Ministries into one single entry.
Furthermore, this is a gigantic hit.
In 2020, Govt reported that Rs 20,000 crore worth of Govt acquisition happened by means of the GeM entry, and this ended up being a gamechanger.
In this article, we will share what is Government eMarketplace, and what is the GeM Registration Process for organizations. Furthermore, we will share the whole financial aspects and adaptation procedure of Govt, including the GeM enlistment charge and that’s only the tip of the iceberg.
What is Government eMarketplace?
Government eMarketplace is a huge entryway, wherein vendors offer their labor and products, and any Govt division Ministry or PSU can acquire them.
It works very much like any online business commercial center like Amazon or Flipkart; however in GeM, the purchasers are just Govt divisions, and dealers can be anybody who has enlisted in the GeM gateway.
The GeM enlistment process for organizations is simple and consistent, and there is no enrollment expense too
Be that as it may, Govt has presented an adaptation methodology, which is reliant upon the business volume and nature of administration given.
GeM portal has some of the most advanced B2B eCommerce features such as e-auction, reverse e-auction, demand aggregation, strict quality control, complete transparency, and more.
GeM Registration Process for Businesses: How to Register in GeM?
The GeM registration process for businesses (or sellers) is extremely easy and seamless and can be done via the GeM portal.
Since there is no GeM Registration Fee, the sellers can be assured of the least expensive way to become part of GeM and start offering their services and products.
However, before registration, the seller should have some pre-requisites:
- What type of business is it? Is it a firm, company, proprietorship, trust, or society?
- Name of the registered business and the related documents
- Aadhaar card and PAN card of the user (mandatory requirement)
- Mobile number of the registered business
- Documents such as CIN, PAN, DIPP, UAM, ITR
- Registered address
- Bank account details
- Active email id
Here are all the GeM Registration Documents required, which will help to complete the steps faster.
In case a seller registers themselves as MSME, then there are added benefits since Govt have reserved a percentage of their procurement for MSMEs, across India
Startups too can register as a seller, and scale their business with Govt procurement on GeM.
The GeM registration process for sellers starts here, wherein you need to enter all the above information.
Need Professional assistance with registration? Contact Us
GeM Registration Fee: Monetisation Strategy of Govt
To be clear, there is no registration fee for sellers. The GeM registration process is entirely free for all sellers and businesses
However, effective June 1st, 2020, the Govt of India has introduced a monetization policy within GeM portals, which is applicable to all sellers.
This is how it works:
- Once a seller crosses Seller Merchandise Value (SMV) of Rs 20 lakh in a year, then they will be required to pay a one-time fee of Rs 10,000 to stay active on the GeM portal as a seller.
- In case a seller has already exceeded SMV of Rs 20 lakh, then a transaction charge will be levied on all orders of Rs 5 lakh or more value. It will depend on the value of the goods and services being offered.
- In case the order value is between Rs 5 lakh to Rs 50 crore, then a 0.5% transaction fee will be charged from the sellers.
- If the order value is between Rs 50 crore and less than Rs 100 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% charge of value above Rs 100 crore of goods.
- If the order value 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% charge for the next Rs 100 crore (which is Rs 30 lakh) + 0.2% of order value above Rs 200 crore.
In case any product is returned or refunded, then the subsequent charges will be rolled back
Benefits of GeM Sellers
- Full access to a centralized, national procurement portal. This means a massive increase in business opportunities, all across India.
- Zero registration fee. ( Our Consultation charges for registration)
- Special quotas and benefits for MSMEs, and startups with assured procurement in some categories.
- Zero paperwork is needed as it’s a completely online process.
- East brand recognition and brand approval process.
- A robust Online grievance redressal system for all sellers and buyers.
- Easy to use the dashboard to monitor sales, and analyze the trends.
- Sellers from NE states and J&K are exempted from ITR filings as well.
- Dynamic pricing will depend on the market conditions and demand-supply ratio.
If you are an MSME, and trying to find out How to Register in GeM, and need more clarity on the GeM registration fee, then you have arrived at the right destination.