What is CRAC in GeM

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Government e-Marketplace (GeM) has transformed the scene of public procurement in India by inculcating a sense of transparency, efficiency and accountability. One of the features of its simplified procurement process is the integration of various features and modules for smooth transacts among its government buyers and registered sellers by GeM. There are quite a number of such vital documents in this process, and one such is the CRAC in Gem – Consignee’s Receipt and Acceptance Certificate.

In this blog post by tender 18 , we shall outline what is CRAC, why it is important in GeM ecosystem, how it is generated and what both buyers and sellers need to know to be compliant and make timely payments.

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What is CRAC in GeM

CRAC, which stands for Consignee’s Receipt and Acceptance Certificate, is a digital certificate generated on the GeM portal once a product or service is received and accepted by the consignee (the buyer or their authorized representative).

In simpler terms, CRAC is a formal acknowledgment by the buyer that:

  • The goods/services ordered have been delivered,
  • They are as per the specifications mentioned in the contract or Purchase Order (PO),
  • And the buyer is satisfied with the delivery and quality.

Once CRAC is generated, it signals the successful completion of the supply stage, thereby initiating the payment process to the seller.

Importance of CRAC in the GeM Procurement Process

CRAC plays a central role in the post-delivery validation of goods or services. Here’s why CRAC is indispensable in the GeM procurement lifecycle:

1. Initiates Payment

Payment to the seller on GeM is processed only after CRAC is generated. Without it, the transaction is considered incomplete.

2. Verification and Accountability

CRAC ensures that goods or services delivered are verified against the terms of the Purchase Order (PO), offering transparency and accountability.

3. Time-Bound Processes

As per GeM guidelines, the consignee is required to generate CRAC within 10 days of delivery. This helps maintain discipline and prevents delays.

4. Dispute Resolution

If there are issues in the supplied items or services, CRAC helps document the status — whether accepted or rejected — which is crucial in raising grievances or initiating returns.

5. Digital Recordkeeping

Since CRAC is generated and stored digitally on the GeM platform, it serves as an official proof of delivery and acceptance, useful for audits and compliance.

Who Can Generate CRAC on GeM

The Consignee is responsible for generating CRAC. In the GeM context, the consignee is the individual or department receiving the goods/services.

Authorized users with the "Consignee" role in the buyer organization’s GeM account have the ability to:

  • Acknowledge receipt,
  • Inspect the delivered goods,
  • Accept or reject the items,
  • And generate the CRAC.

How to Generate CRAC on GeM Portal

Generating CRAC on the GeM platform is a structured and user-friendly process. Here's a step-by-step guide:

Step 1: Login

Visit the official GeM portal

Log in using your Buyer ID and password.

Step 2: Access Consignee Dashboard

Navigate to the "Consignee" section.

Select “Order Management” or “My Orders.”

Step 3: Select Relevant Order

From the list of Purchase Orders, choose the one for which goods/services have been received.

Step 4: Provide Delivery Confirmation

Confirm delivery date.

Indicate the quantity received.

Step 5: Quality Check & Acceptance

Inspect the item for quality, quantity, and specifications.

If accepted, proceed to generate CRAC.

If there is any discrepancy, you may reject the consignment with reasons.

Step 6: Generate CRAC

Click on “Generate CRAC.”

The document is automatically generated and linked to the order.

Once CRAC is submitted, it is stored in the GeM system and is visible to all relevant stakeholders, including the paying authority.

Timeline for CRAC Generation

According to GeM guidelines, CRAC must be issued within 10 calendar days of delivery. Delays in CRAC generation can:

  • Lead to late payments to the seller,
  • Create administrative backlogs,
  • Affect the government department’s reputation and performance score on the portal.

Hence, buyers are encouraged to maintain strict adherence to the timeline.

What Happens After CRAC is Generated

Once CRAC is successfully generated:

  • Payment Process Begins:
    The Payment Authority is notified and the payment process is triggered through the PFMS (Public Financial Management System) or the department’s designated channel.
  • Completion of Order:
    The Purchase Order is marked as “Complete” in the GeM system.
  • Feedback & Rating:
    The buyer may also leave a review or feedback regarding the seller's performance.
  • Seller Notification:
    The seller is informed that the CRAC has been accepted, which helps them track the transaction’s status.

What if CRAC is Not Generated

Failure to generate CRAC can have several consequences:

  • Delayed Payment: Sellers cannot receive payment until CRAC is issued.
  • Escalations: Sellers may escalate the issue to GeM authorities, affecting buyer ratings.
  • Auto-CRAC Feature: In certain cases, if CRAC is not generated within the stipulated time, GeM may initiate Auto-CRAC generation to protect the seller’s rights, assuming no complaint was raised.

Buyers should avoid relying on auto-CRAC as it bypasses manual inspection and can be risky if goods have actual issues.

Key Points to Remember

ElementDetails
Full FormConsignee's Receipt and Acceptance Certificate
Generated ByConsignee (Buyer Department)
TimelineWithin 10 days of delivery
PurposeConfirms satisfactory delivery and acceptance
TriggersPayment process initiation
Digital FormatAvailable on GeM dashboard
Mandatory ForAll orders completed through GeM

Conclusion

In the rapidly evolving landscape of government procurement, tools like CRAC help ensure transactions are transparent, traceable, and timely. It acts as a bridge between delivery and payment — safeguarding the interests of both buyers and sellers. For government officials, adhering to CRAC timelines ensures operational efficiency and avoids payment disputes. For sellers, it marks the beginning of the reward for their efforts — payment.

At Tender 18, we help suppliers, vendors, and contractors navigate every step of the GeM ecosystem — from registration to CRAC generation — ensuring smooth and successful participation in government tenders. Whether you're new to GeM or looking to optimize your procurement strategy, Tender 18 is your trusted partner.

Stay Updated with Tender 18

To stay informed about GeM tenders, procurement updates, and best practices, follow Tender 18. We bring you the latest insights, expert advice, and tools to succeed in India’s dynamic government procurement market. Our specialized GeM Portal Consultant Services are designed to help suppliers and vendors navigate every aspect of the GeM platform — from registration and product listing to bid submission and CRAC compliance — ensuring a smooth and successful procurement journey.

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