Updated on February 18, 2025 02:47:30 PM
GeM stands for Government e-Marketplace, which is an Indian online platform for procurement of goods and services for government organizations.
The vendor exemption on GeM refers to a system of exemptions and waivers that allows certain categories of vendors to be exempt from certain registration and compliance requirements on the GeM platform.
These exemptions are typically given to small businesses, start-ups, and micro, small, and medium enterprises (MSMEs) as a way to encourage their participation on the platform and to promote inclusive procurement by the government.
The exemptions may include things such as waiving the security deposit required for registration, or allowing vendors to sell certain goods or services without obtaining certain certifications.
The exact exemptions and waivers that are available can vary depending on the policies and regulations of the government agency using the GeM platform. In general, the aim is to make it as easy as possible for small businesses and MSMEs to participate in government procurement and to level the playing field with larger vendors.
Certain sellers are exempt from the vendor assessment test based on specific product categories or guidelines. Below is a list of sellers exempt from assessment:
Sellers with an annual turnover of Rs. 500 Crore or more in at least one of the last three years, as indicated during registration.
Central or State PSUs are automatically exempt from the vendor assessment test.
Sellers offering products like artwork, handicrafts, or other items where no standard manufacturing process exists. The exempted categories will be specified by the category owner.
Registered Societies, Trusts, or similar bodies with government representation are exempt.
Sellers from organizations like KVIC, WDO, Coir Board, and TRIFED are exempt from assessment.
OEMs holding a BIS (Bureau of Indian Standards) License for a specific product category, validated through the BIS database. The exemption is valid for three years. Sellers must notify GeM in case of BIS license cancellation, which will lead to withdrawal of exemption.
OEMs with a Unique Certification Code (UCC) issued by DRDO, OFB, or SITRA. The exemption is valid for the duration of the UCC certificate.
Sellers recommended for exemption by CPSEs, Central, and State Government Departments or Authorities for specific categories and valid periods.
Any other sellers as notified with the approval of the CEO of GeM.
If you falls under the exemption category then you can follow these steps to apply for Vendor assessment exemption.
Step-1: Login to your GeM account on the portal with your username and password.
Go to "my account" tab and then click on "My ACTION".
Step-2: Now Click on "CREATE EXEMPTION REQUEST" and select the format for vendor assessment exemption which is applicable as per nature of your category and then proceed.
Step-3: Upload all the necessary documents and certificate to make an assessment exemption request and then proceed further.
Once the uploading of required documents in complete note down your GeM vendor assessment exemption request ID for tracking.
Rail India Technical and Economic Service is the apex body that is solely responsible for issuing OEM status to vendors on GeM portal after successful assessment of their products.
Vendor assessment is carried out by RITES in two stages:
Applicants are required to submit Information and documents about their product and process and if any irregularities is found then non-compliance (NC) would be raised.
Video Assessment is conducted by an expert using the mobile based application through video calling. It will validate the entire process submitted by the vendor through documents in Desktop Assessment.
The GeM Vendor Assessment process is completely online, ensuring a seamless experience for sellers.
The validity of the Vendor Assessment is 3 years from the date of completion.
Sellers have the flexibility to appear for the Vendor Assessment before the due date of validity.
The Vendor Assessment fee must be paid directly to RITES, and it is non-refundable.
After completing the Vendor Assessment application, RITES will contact applicants within 15 working days.
Vendor validation is mandatory for all seller
The Vendor Assessment Fee is based on the annual turnover of the seller. Below is the breakdown of the fees, inclusive of GST:
| Annual Turnover | Vendor assessment Fee inclusive of GST |
|---|---|
| Up to 20 lakhs | ₹ 871.61 |
| From 20lakh - 1Cr | ₹ 1743.22 |
| More than 1 Cr | ₹ 3486.44 |
In addition to the Vendor Assessment Fee, Caution Money Deposit is also required based on the seller's turnover:
| Caution Money Deposit | Fees |
|---|---|
| Seller Turnover less than 1 Crore | Rs 5,000/- |
| Seller Turnover in between 1 Crore and 10 Crores | Rs 10,000/- |
| Seller Turnover more than 10 Crores | Rs 25,000/- |
Exemption from GeM vendor assessment offers significant benefits to eligible companies by reducing the compliance burden and simplifying the registration process. Companies such as NSIC registered OEMs, DPIIT recognized start-ups and government organizations can use this exemption to expedite their participation in public procurement. However, knowing the eligibility criteria and submitting the required documents is crucial for the exemption process to run smoothly. Companies wishing to take advantage of the GeM without undergoing the supplier assessment can efficiently manage the requirements with professional support.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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After the Video Assessment, the seller gets the OEM certificate / Report.
Vendor Assessment is mandatory for products falling under Q1 and Q2 category on GeM Portal. After registration on GeM, sellers are required to apply for Vendor Assessment to evaluate the credentials and quality standards.
Yes, sellers can reappear for assessment before the validity period ends.
Sellers with an annual turnover of Rs 500 Crore or more, Central/State PSUs, OEMs with BIS license, and other specified categories.
RITES is responsible for issuing OEM status and conducting the assessment process.
Yes, both manufacturers and resellers/traders can register on the GeM portal. However, resellers must provide an authorization code and a letter from the manufacturer to sell products on GeM. Manufacturers can manage their resellers on the platform.
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