The GeM Procurement Manual should be understood as part of the wider government procurement framework rather than as a single checklist that applies identically to every GeM purchase.
For government buyers, the process is governed by the General Financial Rules, applicable procurement manuals, GeM procedures and the terms of the particular procurement. The Department of Expenditure currently lists the Manual for Procurement of Goods, Second Edition 2024, along with separate 2025 manuals for consultancy and non-consultancy services.
For businesses selling through GeM, the practical focus is different. Sellers need to maintain an accurate profile, list products or services correctly, understand the bid requirements, submit the required documents and follow the conditions of each order or bid.
This guide explains how the GeM procurement process works, what buyers should check at each stage, what sellers need to prepare and where common mistakes happen.
The term GeM Procurement Manual is commonly used to describe the procurement rules and procedures that apply to purchases made through the Government e-Marketplace.
The current framework connects GeM procurement with:
The Manual for Procurement of Goods, 2024 specifically explains procurement channels, including procurement through GeM, and refers buyers to GeM for registration, supplier listing, bidding and reverse-auction procedures.
This matters because procurement rules can change. A blog should therefore avoid presenting old thresholds or platform instructions as permanent rules.
The GeM procurement framework is most directly relevant to government buyers and procuring entities, because they are responsible for selecting the appropriate procurement method and following financial and procurement rules.
However, sellers also need to understand the process because their participation depends on the buyer's requirements.
Buyers need to:
Sellers need to:
If you are new to seller registration, you can read How To Register in GeM Portal as Seller.
The procurement process should begin with a clearly defined requirement.
Before creating a purchase request or bid, the buyer should identify:
A vague requirement can create problems later.
For example, instead of simply searching for "computer," the buyer may need to define the required processor, RAM, storage, operating system, warranty and other relevant specifications.
The specifications should describe the actual requirement without unnecessarily restricting competition.
For common goods and services available on GeM, government procurement is generally required to be conducted through GeM under Rule 149 of the GFR. The current procurement framework also provides procedures for cases where the required item or service is not available on GeM.
Therefore, a buyer should first establish whether the required goods or services are available on the platform.
If the requirement is not available on GeM and procurement is proposed through another route, the applicable rules and documentation need to be followed.
The 2024 Goods Procurement Manual also refers to generating a GeM Availability Report and Past Transaction Summary (GeMAR&PTS) when procuring outside GeM in applicable circumstances.
This is one of the most important parts of the GeM procurement process.
The current Rule 149 framework provides the following broad purchase levels for goods and services available on GeM:
| Procurement Value | Broad GeM Route |
| Up to ₹50,000 | Purchase from an available GeM supplier meeting the required quality, specification and delivery conditions |
| Above ₹50,000 up to ₹10 lakh | Purchase from the lowest-priced eligible GeM seller among the applicable sellers, subject to the rule's conditions |
| Above ₹10 lakh | Mandatory bids using GeM's online bidding or reverse-auction mechanism |
The current rules also state that online bidding or reverse auction tools can be used for procurements below ₹10 lakh where appropriate. Special thresholds can apply to certain scientific ministries and organisations, so buyers should check the applicable rule before relying on the general thresholds.
Important: These thresholds replace the outdated ₹25,000 and ₹5 lakh figures currently shown on the Tender18 article.
After identifying the procurement method, the buyer should search for suitable products or services on GeM.
Consider:
The objective is not simply to choose the cheapest listing.
The selected offer must meet the required quality, specification and delivery conditions.
The procurement framework also places responsibility on the procuring entity to satisfy itself that the selected price is reasonable. Business Analytics and past purchase information available through GeM can be used for price assessment.
For procurements requiring competitive bidding, the buyer may use GeM's e-bidding or reverse-auction functionality.
In e-bidding, the buyer defines the requirement and eligible sellers submit their offers according to the published conditions.
In a reverse auction, eligible sellers compete through the applicable online price-reduction mechanism.
The exact bidding conditions, start and closing times, technical parameters and commercial terms should be specified in the bid.
Do not assume that every GeM purchase automatically requires a reverse auction.
A GeM bid should contain enough information for sellers to understand exactly what is required.
Depending on the procurement, this may include:
Poorly written specifications can create confusion during technical evaluation.
The buyer should also avoid adding unnecessary conditions that do not relate to the actual requirement.
Before evaluating prices, the buyer should check whether the seller meets the conditions specified in the bid.
Depending on the procurement, this may include:
A low price does not compensate for failure to meet a mandatory technical or eligibility condition.
Technical evaluation should be based on the requirements published in the procurement.
Check:
For complex procurement, technical evaluation may need more detailed scrutiny before financial comparison.
This is especially important when multiple sellers offer products that appear similar but differ in specifications or compliance.
Once the technical requirements have been assessed, the financial offer can be evaluated according to the applicable procurement method.
The buyer should consider:
The objective is to identify an offer that meets the required conditions and provides reasonable value, not simply to select a number without checking the underlying scope.
A buyer should not divide one requirement into smaller purchases simply to avoid the procurement method or approval requirements applicable to the total demand.
The current procurement framework specifically addresses the need to avoid dividing demand into small quantities to bypass L1 buying, bidding, reverse auction or approval requirements.
For example, if an organisation genuinely requires 500 units of a product, it should not artificially divide the requirement into multiple smaller purchases merely to remain below a procurement threshold.
The procurement requirement should be assessed as a whole according to the applicable rules.
After the applicable evaluation and approval process is completed, the buyer can proceed with the purchase order.
The order should accurately reflect the agreed conditions, including where applicable:
The buyer should compare the final order against the approved procurement decision before proceeding.
After the purchase order is issued, the seller needs to deliver the goods or perform the services according to the agreed terms.
The buyer or consignee should verify:
The acceptance process should be recorded according to the applicable GeM and contractual workflow.
Sellers should also keep delivery documents and other evidence required under the order.
After successful delivery and acceptance, the seller can complete the applicable invoice process through GeM.
Before submitting an invoice, check:
Payment timelines can depend on the applicable contract and current GeM procedures, so sellers should not rely on an old fixed number of days stated in an older blog post.
Proper record keeping is important for government procurement.
Depending on the transaction, records may include:
Maintaining these records makes future audits and internal reviews easier.
Although the procurement manual is mainly relevant to government buyers, sellers should understand the buyer's process.
A seller's workflow can be:
Register on GeM
↓
Complete Seller Profile
↓
List Relevant Products or Services
↓
Monitor GeM Bids
↓
Check Eligibility
↓
Read Technical Requirements
↓
Prepare Documents
↓
Submit Technical and Financial Information
↓
Participate in Reverse Auction if Applicable
↓
Track Bid Status
↓
Fulfil Order if Selected
If you need a separate guide to bidding, read How to Participate in GeM Bids.
Sellers should avoid searching randomly through every available opportunity.
Instead, search according to:
Tender18 maintains a dedicated GeM Tenders section where businesses can research GeM tender information using available filters.
You can also read Search Tenders on GeM with Tender18 for a more focused guide to finding relevant opportunities.
Before submitting a bid, check:
Does your product or service meet every mandatory specification
Does your business satisfy the stated qualification conditions
Can you provide all required certificates and declarations
Can you meet the required delivery period and location
Can you offer a commercially viable price without compromising the required scope
If the bid requires manufacturer authorisation, do you have the applicable documentation
For OEM-related requirements, see GeM OEM Authorization Code.
Confirm the exact closing date and time shown in the current bid.
Not every procurement requirement fits neatly into a standard catalogue.
GeM provides different procurement mechanisms for different requirements, and custom bidding can be used where the buyer needs to define a more specific requirement.
A custom bid may contain detailed:
Custom bidding should not be presented as an automatic requirement based solely on the purchase value.
The applicable procurement method depends on the requirement and the rules governing that procurement.
For more information, see Custom Bid in GeM.
OEM requirements can become important when a procurement specifies a particular manufacturer, brand or authorised seller arrangement.
A buyer may need to verify:
A seller should not claim OEM authorisation unless the applicable documentation supports the claim.
This is especially important for branded products where the bid contains manufacturer-specific requirements.
Government procurement thresholds can change.
Better approach: Check the current GFR and applicable procurement manual before publishing procurement guidance or making a purchase decision.
The manual is part of a broader framework.
Better approach: Check GFR provisions, current GeM procedures and bid-specific conditions.
The lowest price is not enough if the offer does not meet the required specifications.
Better approach: Check technical compliance before financial evaluation.
Ambiguous specifications can make evaluation difficult.
Better approach: Define measurable and relevant technical requirements.
Artificially dividing demand can create compliance issues.
Better approach: Evaluate the complete requirement according to the applicable procurement rules.
If the required goods or services are available on GeM, buyers need to follow the applicable Rule 149 framework.
Sellers sometimes focus on the product and ignore eligibility or documentation requirements.
Better approach: Create a bid-compliance checklist before submission.
Different products, services and procurement methods can have different conditions.
Better approach: Treat the specific tender or purchase requirement as the final operational reference.
Before finalising a procurement, check:
☐ Requirement clearly defined
☐ Quantity confirmed
☐ Technical specifications prepared
☐ GeM availability checked
☐ Applicable procurement method identified
☐ Current financial threshold checked
☐ Price reasonableness considered
☐ Seller eligibility reviewed
☐ Technical evaluation completed
☐ Financial evaluation completed
☐ Required approvals obtained
☐ Purchase order checked
☐ Delivery terms confirmed
☐ Acceptance recorded
☐ Invoice processed
☐ Procurement records maintained
Before submitting a bid:
☐ GeM seller profile updated
☐ Product/service category verified
☐ Bid eligibility checked
☐ Technical specifications reviewed
☐ Experience requirements checked
☐ Certifications prepared
☐ OEM documents checked where applicable
☐ Commercial conditions reviewed
☐ Delivery requirements confirmed
☐ Financial bid reviewed
☐ Required declarations prepared
☐ Bid closing date confirmed
☐ Corrigenda or clarifications checked
☐ Final submission reviewed
The existing Tender18 article currently states:
Those figures are outdated. The current government framework reflected in the updated GFR and procurement materials uses ₹50,000, ₹10 lakh, and above ₹10 lakh for the general Rule 149 GeM purchase framework. Special provisions apply to certain scientific organisations.
The article also previously presented custom bidding as a mandatory route above ₹5 lakh. That should be removed. The current framework states that above ₹10 lakh, procurement requires obtaining bids through GeM's online bidding or reverse-auction tools, while those tools can also be used for lower-value procurements.
This correction is important because a procurement article should not give readers financial thresholds that no longer match the current government framework.
Following GeM procurement rules is not simply about memorising a few financial thresholds.
A better process is:
Define the requirement
↓
Check GeM availability
↓
Identify the applicable procurement method
↓
Set clear specifications
↓
Search and evaluate suitable offers
↓
Conduct bidding where required
↓
Evaluate technical and financial compliance
↓
Issue the purchase order
↓
Complete delivery and acceptance
↓
Process the invoice
↓
Maintain procurement records
For sellers, the process is:
Maintain GeM profile
↓
List relevant products/services
↓
Find suitable bids
↓
Check eligibility
↓
Prepare documents
↓
Submit the bid
↓
Participate in RA where applicable
↓
Track the result
↓
Fulfil the order if selected
The most important point is to use the current rules and the specific procurement documents, rather than relying on an old threshold, generic blog post or outdated GeM workflow.
Tender18's GeM Tenders section can be used to research GeM tender opportunities, while the related guides on How to Participate in GeM Bids and Search Tenders on GeM with Tender18 cover the seller-side tender discovery and participation process.
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