Exemption in GeM Vendor Assessment

Introduction

Government e-Marketplaces (GeM) have transformed procurement processes by providing a digital platform that is transparent, efficient, and user-friendly. For sellers, the GeM platform ensures hassle-free onboarding and credibility by compulsory process of Vendor Assessment. To encourage higher participation, many exemptions are provided for eligible vendors. These exemptions help to reduce the financial cost and documentation burden, making it easier for business. In this article you will get an in depth understanding on GeM Vendor Assessment exemptions including its meaning, exemptions categories, process and benefits.

What is GeM Vendor Assessment?

Vendor Assessment on GeM (Government e-marketplace) is a procedure that certifies and evaluates the authenticity of sellers on this e-platform. The accredited agencies such as RITES (Rail India Technical and Economic Service) conducted this assessment to ensure that only authentic and qualified vendors may engage in government procurement. This assessment helps to build buyers' trust, maintaining the quality standards and the transactions’ transparency.

Sellers in specific categories, such as manufacturers, service providers, and resellers, are required to do Vendor Assessment on GeM. Some entities, such as MSMEs and sellers in low-risk or low-value categories, are exempt from these regulations. There are several parameters for this assessment that includes financial stability, past performances and technical expertise.

Exemptions in GeM Vendor Assessment

Exemptions from the Vendor Assessment are provided to certain categories of sellers to simplify the onboarding process. Exemptions allow eligible vendors to bypass the assessment process and still participate in procurements. If the sellers falls under below mentioned category, exempted from the GeM Vendor Assessment:

1. If the seller has ₹500 crore or more annual turnover, at least in one of the last three years are captured during registration.
2. Central or State PSUs
3. Any sellers who are registered in any societies, trust or any other bodies with the government representation.
4. Sellers affiliated with KVIC, Coir Board, WDO or TRIFED.
5. Any OEMs obtaining a valid BIS License for the product. (Validation for this exemption will be for three years). In case of license cancellation, must notify the GeM department).
6. Exemptions are available to sellers recommended by government departments, CPSEs, or buyer organizations, pending approval by GeM's functional head and verification by the Vendor Assessment Agency.
7. Manufacturer of Vaccine, according to the list which is provided by the Ministry of Health & Family Welfare.
8. Any drug or medicine manufacturer with the valid certified copy of drug license from concerned drug authority.
9. Manufacturer of Medical devices with a valid Manufacturing license.
10. Other categories of sellers as notified with the approval of CEO-GeM.

Process to Avail GeM Vendor Assessment Exemptions

The complete stepwise process to avail GeM Vendor Assessment Exemptions are as follow:

• Step 1: Visit the official GeM Portal - https://gem.gov.in/ and login by your user ID and passwords and proceed.
• Step 2: Once logged in, click on Dashboard, select vendor assessment which will be under the "My Action tab". Here, you will get three options:
  1. Assessment
  2. Assessment Exemptions
  3. Assessment Exemption Documents
  Proceed with the Assessment Exemption documents and Assessment exemptions tabs, in case you fall under the exemption category.
• Step 3: Click on Create Exemption Request and upload all the required documents as per the exemption criteria.
• Step 4: Provide additional supporting information such as owner name, nationality, etc. also ensure proper documentation is submitted for specific exemptions like BIS License.
• Step 5: Once above mentioned steps done, review all the information and uploaded documents. Then click on submit to finalize your exemption request and note down the "Request ID" for future references.

Benefits of GeM Vendor Assessment Exemptions

1. Sellers who are exempted from GeM Vendor Assessment relief from the fees associated with the assessment and reduce the financial burden.
2. Assessment procedure is a lengthy process, exemptions helps in quicker onboarding and faster participation in tenders.
3. These exemptions simplify the entry process for startups, MSMEs and other small-scale businesses, promoting higher participation in government procurement.
4. In exemptions the vendor submit fewer documents as compared to those who go for full vendor assessment and easing administrative efforts.
5. GeM Vendor Assessment Exemptions boost local manufacturing where the policy supports domestic industries and enhance the "Make in India" initiatives.

Why Bizfoc?

• Expert Guidance: Our team of experienced Chartered Accountants will assist you with the Vendor assessment process, ensuring that you navigate complexity with ease.
• Customized Solutions: Whether you're an OEM, reseller or service provider, Bizfoc tailors its services to your specific business needs.
• Transparent Process: Transparency is a main priority for Bizfoc, which assures that clients are aware of all costs, deadlines, and needs.

Conclusion

The Vendor Assessment exemption on GeM is an important tool to promote participation, especially for MSMEs, startups, and other eligible entities. Exemptions simplify processes, reduce costs, and promote broader participation in government procurement. The exemption process requires careful attention to detail in order to understand eligibility and complete it efficiently. No matter if you are a fresher vendor or a large established business seeking exemptions, Bizfoc is here to guide you. Contact us and seek professional guidance to grow your business on the GeM platform with confidence.

Frequently Asked Questions