Government e-marketplace latest notification relating to GeM transaction charges

Government e-marketplace latest notification relating to GeM transaction charges

Government e-marketplace (GeM) latest notification relating to GeM transaction charges

All the sellers/service providers have been notified that according to GeM policy, the sellers are required to pay the GeM transaction charges within 10 days from the date of Contract Placement against the transaction charge intensive order.

With respect to all eligible Bids/contracts which has been published on the portal after 15th December 2019 contracts shall be cancelled in case, the sellers fail to pay the transaction charges within 10 days from award of the contract. For the matter relating to the failure in order to pay within the aforementioned time, the contract would be cancelled and then the seller shall be legally responsible for penal action in accordance with the Incident management policy. 

Also in accordance with revised Incident Management Policy of GeM, GeM shall be implementing platform-driven punishments against Seller/Service Provider for cases relating to all the deviations such as - 

(i)      Delay in Delivery   

(ii)     Failure towards confirming an order received within set time leading to Auto-cancel of order 

(iii)    Decline of Order   

(vi)    Buyer cancelling the order owing to non-supply of goods/services 

However, all Sellers/Service Providers have been advised to read the IM Policy and sternly adhere to the GeM guidelines.  Seller/Service Provider would solely be responsible if any action is taken against them according to the policy.  The deviations on GeM portal w.e.f. 23rd November 2019 would attract the platform-driven punishments according to IM policy.

What is Government e-marketplace (GeM)?

Government e-Marketplace (GeM) is basically a one-stop portal in order to facilitate online procurement of common use Goods and Services which is needed by various Government Departments or Organizations or PSUs. GeM intends to improve the transparency, effectiveness as well as speed in public procurement. It furnishes a medium regarding e-bidding, reverses e-auction as well as demand aggregation in the direction of facilitating the government users to attain the best value for their money.

The purchases made by means of GeM through Government users have been authorized as well as made compulsory by the Ministry of Finance through adding a new Rule No. 149 in the General Financial Rules, 2017.

The platform could be accessed at https://gem.gov.in

Advantages for Buyers relating to GeM

•    Offers rich listing of goods for individual categories of Goods and Services

•    Makes an available search, compare, select and purchase facility

•    Enables purchasing Goods and Services online, as and when requisite.

•    Furnishes transparency and easiness of buying

•    Make certain continuous vendor rating system

•    Up-to-date user-friendly dashboard for purchasing, monitoring supplies as well as payments

•    Provision relating to the easy return policy

Advantages for Sellers relating to GeM

•    Direct access towards all the Government departments.

•    One-stop-shop for marketing with minimal efforts and forbids/ reverse auction on goods/services

•    New Product Suggestion facility available towards Sellers

•    Dynamic pricing: Price could be changed depending on market conditions

•    Seller friendly dashboard for selling, as well as monitoring of supplies and payments

•    Consistent and uniform purchase processes

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eStartIndia Team

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