Sunteți pe pagina 1din 37

GeM Overview

1. Rule 141 A and GFR Purchase Rules

2. Procedures for Payment in GeM
KS Gopinath Narayan, IAAS
National Institute of Financial Management
Faridabad, India
Insertion of Rule 141-A after Rule-141 in
General Financial Rules (GFR), 2005
The DGS&D will host an online Government e-Marketplace
(GeM) for common use Goods and Services.
The GeM would be dynamic, self-sustaining and user
friendly. DGS&D will ensure adequate publicity including
periodic advertisements in newspapers of the GeM and the
items to be procured through GeM for the prospective
The procuring authorities will satisfy themselves that the
price of the selected offer is reasonable.
Rule 141A (Contd..)
(GeM) may be utilized by Government buyers (at their option) for
direct on-line purchases as under:
a) Upto Rs.50,000/- through any of the available suppliers on the
GeM, meeting the requisite quality, specification and delivery
b) Above Rs.50,000/- through the supplier having lowest price
amongst the available suppliers on the GeM, meeting the requisite
quality, specification and delivery period. GeM will also provide
tools for online bidding and online reverse auction which can be
used by the Purchaser.
The above monetary ceiling is applicable only for purchases made
through GeM. For all other purchases, GFR Rule 145, 146, 150 and
151 will apply.
Rule-145: Purchase of goods without quotation
Purchase of goods upto the value of Rs.15,000/- (Rupees
Fifteen Thousand) only on each occasion may be made
without inviting quotations or bids on the basis of a
certificate to be recorded by the competent authority in the
following format.
I, ___________________, am personally satisfied that these
goods purchased are of the requisite quality and
specification and have been purchased from a reliable
supplier at a reasonable price.
Rule 146. Purchase of goods by purchase committee
Purchase of goods costing above Rs. 15,000/- (Rupees Fifteen
Thousand) only and upto Rs. 1,00,000/- (Rupees One lakh) only on each
occasion may be made on the recommendations of a duly constituted
Local Purchase Committee consisting of three members of an
appropriate level as decided by the Head of the Department. The
committee will survey the market to ascertain the reasonableness of
rate, quality and specifications and identify the appropriate supplier.
Before recommending placement of the purchase order, the members of
the committee will jointly record a certificate as under.
Certified that we _____________________, members of the purchase
committee are jointly and individually satisfied that the goods
recommended for purchase are of the requisite specification and quality,
priced at the prevailing market rate and the supplier recommended is
reliable and competent to supply the goods in question.
Rule 150: Advertised Tender Enquiry
Rule 151: Limited Tender Enquiry
Government e-marketplace
Procedures for Payments to Sellers/Suppliers in
Government e-Marketplace
Procedure for Payments

OM Dated 20th September 2016 (MoF, DoE,

Procurement Policy Division)

In pursuance to Rule No. 141-A of GFR 2005, the

following procedures are prescribed for making
payments to the Sellers / Suppliers in GeM which
shall be complied and adhered to by all concerned:
The Government Buyer i.e the concerned Programme Division or Administrative Unit in
a Ministry/ Department will place the Contract / Supply Order I Purchase Order
online after taking prior approval of the Competent Authority for procuring a
particular Good or Service. Inter-alia, the Contract/ Supply Order I Purchase Order
form will also contain the following fields including fields for payment related
a) Administrative approval of the Competent Authority indicating the designation of the approving
b) Approval of Competent Financial Authority indicating designation of the officer;
c) Whether IFO concurrence required? (Yes/ No)
d) If yes, then IFD Diary No. & Date.
e) Budget Head of Account and Year. Major/Minor/Sub-head/Detailed-head/Object Head as in
Detailed Demands for Grants.
f) Budget availability as on date (Yes/No)
g) Amount (Contract Value): Rs.. ... . (Budget to be blocked)
h) If expenditure is committed for more than a year, the year-wise details - (portal should generate
a Liability Register for recording multi-year payment commitments, the format for which is
prescribed in Rule 53
Procedure for Payments
2. When these fields are duly captured the Buyer will be in a
position to place the Order online. The GeM portal will generate
a) Sanction Order (Sanction Order.pdf)
b) Contract Agreement/Supply Order/Purchase Order and
these will be digitally signed by the Buyer. Contract
c) These documents duly signed digitally by the Buyer will be
made available online to the concerned DDO, PAO and
d) The DDO and PAO shall have access to the Contract
Agreement /Supply Order/Purchase Order online In order
to ensure that the Bill is generated at the stage of payment
in accordance with the contractual provisions.
Procedure for Payments
3. The GeM portal will send the Sanction Order details to PFMS
/ corresponding Payment system of Ministries of Railways or
Defence or Department of Post (Payment System of Railways/
4. On placing the Contract/ Supply Order/Purchase Order, the
amount required from the relevant Budget Head gets blocked in
the PFMS/ Payment System of Railways/Defence/Post.
5. Should it be necessary to amend the Contract, the amended
Contract/Supply Order / Purchase Order with due approval of
the Competent Authority and acceptance of the Seller/
Supplier shall be made available to the Supplier/DDO/PAO on
the GeM portal.
Procedure for Payments
6. Similarly, in the event of cancellation of the Contract /
Supply Order I Purchase Order the information would be made
available to the Seller I Supplier, DDO and PAO on the GeM
portal. In that event, funds so blocked earlier would be
7. The Programme Division/Administrative Unit in the Ministry/
Departments shall periodically review the blocked budget to
ensure that funds are utilized within the same financial year.
8. The performance security would be obtained from the
Seller/Supplier as per Contract/Supply Order/Purchase Order,
and their details reflected on the GeM portal by the Buyer.
Procedure for Payments
9. On dispatch/ delivery of Goods and/or Services, the
Seller / Supplier shall prepare an electronic Invoice cum
Bill, digitally signed, on GeM portal and shall submit on-line
to the Buyer and DDO/PAO.
10. Then GeM portal will send a SMS/ email alert to the
Buyer, on submission of Invoice. This Invoice will contain
mode of dispatch of goods, dispatched! Delivered quantity
with date and all inclusive price claimed based on digitally
signed Contract / Supply Order/Purchase Order data. In
case Services are procured, the required data as per
Contract / Supply Order / Purchase Order may be
incorporated in the invoice.
Procedure for Payments

11. The Buyer/consignee receives the Goods/Services and

issues an online Provisional Receipt Certificate (PRC), within
48 hours, on 'said to contain basis' on the GeM portal with
his/her digital signature, mentioning the date of Receipt
(From this date of PRC. the period of 10 days for
consignee's/buyer's right of rejection and return policy
would be applicable).

Provisional Receipt Certificate (PRC)
Procedure for Payments
11. After verification Including assessment of quality and
quantity, the Consignee will Issue on-line digitally signed
Consignee's Receipt & Acceptance Certificate (CRAC) for
that stage within 10 days of date of issue of PRC.
12. The CRAC would clearly indicate:
the Order quantity
rejected quantity (if any, with reasons for rejection
including shortages/damaged /unaccepted quality)
quantity accepted and cleared for payment
Consignment Receipt and Acceptance Certificate
Procedure for Payments

13. If the consignee does not issue CRAC within 10 days, on

11th day from the date of receipt indicated in PRC, GeM
System / Portal would auto generate CRAC for the full
quantity indicated in the PRC as deemed accepted for
14. This will be made available on GeM to Buyer/ Seller and
also the concerned DDO and PAO. The GeM portal would
generate a unique serial number for CRAC relating to
concerned DDO & PAO, so that the payments are made
Procedure for Payments
15. Based on Contract/Supply Order/Purchase Order
including amendments (if any) and CRAC for the accepted
quantity and the revised Invoice cum bills for accepted
quantity digitally signed on GeM, System/Portal would
compute the net amount payable duly deducting the TDS (if
any) and Liquidated Damage (Lo) amount, if any (to be
computed if actual date of delivery mentioned in the PRC is
beyond the last date of delivery Period given in the
Contract) tor payment.
Procedure for Payments

16. GeM System Portal will generate seriatim on-line bills

having detail of Gross amount, deductions and net payable
amount based on details provided by Buyer.
17. After verification of the correctness of the amount and
signing the bills digitally, DDO shall submit the same to PAO
for e-payment on PFMS /Payment Systems of Railways/
Defence/Post. These internal processes shall be visible to
the seller/supplier on the portal.
Procedure for Payments
18. After pre-check PAO shall, debit the Government account,
releasing the corresponding payment through PFMS/ Payment
System of Railways/ Defence/Post to be credited Into the
bank account of the Seller/Supplier.
19. The payment so released shall be credited to the Seller l
Supplier's account within 24 hours (excluding public holidays)
SMS alerts shall be sent to the Seller and Buyer after the
payment is authorized by PAO and also after the confirmation
of the payment by the bank.
20.The payment authorization as well as payment confirmation
details shall be shared by PFMS Payment System of Railways/
Defence/Post on the GeM portal. The PAO and DDO shall
comply with the provisions of GFR for budget implementation.
Procedure for Payments
21. It is obligatory for payments to be made without any delay
for purchases made on GeM. In no case, should it take longer
than the prescribed timelines.
22. The timelines after Consignee Receipt and Acceptance
Certificate (CRAC) issued on-line and digitally signed by
consignee, will be two (2) working days for Buyer, one (1)
working day for concerned DDO and two (2) working days tor
concerned PAO for triggering payment through
PFMS/Government Financial System/Banks for crediting to the
supplier's account.
23. Any matter needing a resolution will be escalated to the
next higher level in each agency (Buyer, DDO and PAO) where
the matter should be resolved within 24 hours In the entire
process, payment should not exceed 10 days including holidays.
Procedure for Payments

24. GeM System / Portal would also have on-line provisions

for generating supplementary Invoice cum Bills for
claim/refund of statutory changes In Duties and taxes, if
any, as above. A provision for all types of refunds/claims
should be available on-line.
25. The above procedures and time lines shall be strictly
adhered by the Ministries/Departments.
Procedure for Payments

Thank you !!!

GeM Overview
Prepared by - Sh Rajesh Gupta
Director, DGS&D
What is GeM?
GeM - Government e-Market Place.
One stop Online Market Place for common use goods and
services for government users.
Genesis - Recommendations of two Group of Secretaries and
Honble FM Budget Speech 2016 directives.
GeM - Objective
Provide government users the speed and flexibility of e-
commerce site in sourcing its requirement
Relieve government users from mundane tendering activities
To have technology enabled dynamic, self sustaining, user
friendly, fair and transparent procurement system
To promote standardization of products, demand
aggregation, Make in India
Mandated by GFR Rule 141A
Government users at its option can use GeM for direct online
Financial Limits
Upto Rs. 50,000/- through any of the available suppliers on GeM
Above Rs. 50,000/-, through the supplier having lowest price
amongst the available suppliers on GeM
Procuring authority to satisfy that the price of the selected offer is
reasonable and meet the requisite quality, specifications and delivery
GeM also have facility for e-bidding and reverse auction
GeM Essential Features
Data Integration with Aadhaar, BAS, MCA 21, Udyog
Aadhaar, PAN
Dynamic System - Online submits its products specification
parameters, prices, delivery schedule
No Human Intervention; PMO Vision Minimum
Government Maximum Governance
Pilot Phase/NeGD
26 different products and services
Terms and Condition
Currency - INR only
Rates - Inclusive of all duties and taxes
Terms of Delivery - Free Delivery at Consignee Site
Undertaking - Offered prices in the GeM shall in no case exceed
Maximum Retail Price (MRP) and/or those concurrently offered by
the Seller elsewhere including any e-commerce sites.
Digitally e-signed offer at the terms and conditions of GeM
Terms and Condition
Online Purchase Order Sellers rates and delivery schedule
Liquidated damages for delay in supplies
Refund Policy 10 days
Consignee Receipt and Acceptance Certificate
Payment Terms & Conditions
Dispute resolution mechanism
No Usage charges during pilot phase
GeM: Parties
Parties in GeM
Who can buy
How to register to buy
How to buy
Who can sell
How to register to sell
Role and responsibilities
Each has its predefined role and responsibilities
Procurement Objectives
Purchasers Perspective
Quality products
Speed, Flexibility, User friendly
Sellers Perspective
Equal opportunity to supply
Timely receipt of payment
Terms and conditions provision to penalise misconduct of suppliers
Government users to ensure payment - Detailed Guidelines for release
of Payment vide DOE OM Number 26/04/2016/PPD dated 20.09.2016
GeM Privacy Policy
The type of data/ information shared and its purpose
Personal to uniquely identify
Non-Personal IP address, Browser, Date and time of visit
GeM's information & security practices and policies; and
GeM's policy on sharing or transferring your data or information
with third parties
GeM Disclaimer Policy
Information provided on GeM
Not to be used for any legal purposes
No responsibility in relation to the accuracy, completeness,
Not a statement of law
Liability for any expense, loss or damage arising out of or in
connection with the use of this portal.