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MSME & START-UP BULLETIN, VOLUME 1, ISSUE 1, AUGUST 2022
A Bird’s-eye view of GeM

Source of the Article:
AIDE MEMOIRE ON LENDING TO MICRO, SMALL & MEDIUM ENTERPRISES SECTOR (1st Edition)
published by the erstwhile Banking, Financial Services and Insurance Department of The Institute of Cost
Accountants of India

The Government e. marketplace (GeM) platform transaction and contracting.
was launched on 9th August, 2016 as an online end to
end solution for procurement of commonly used goods d) GeM shall provide decision support to help
and services for all Central Government and State users achieve optimal value-for-money: GeM
Government Ministries, Departments, Public Sector platform shall provide additional features such
Units (PSUs) and affi liated bodies. The following as buyer and seller rating, tools to establish price
Government directives have been issued in relation to reasonability and demand forecasting to help its
GeM: users make more informed decisions.

1. Rule 141-A of GFR 2005, superseded by Rule e) GeM shall provide a robust audit trail along with
149 of GFR 2017. an internal system of check and controls:

2. Office Memorandum on GeM payment and GeM platform shall employ a system of inbuilt
timelines dated 20th September, 2016. checks and controls and maintain an audit trail (for a
period specifi ed on the GeM platform) that shall make
3. Office Memorandum on the entry in the it possible to trace back the activity of any user if the
Government of India (Allocation of Business) need arises.
Rules, 1961 dated 9th December, 2016.
f) GeM shall be an inclusive platform and support
4. Cabinet Note dated 7th April, 2017. the objectives of the various preferential market
access policies: GeM shall, to the extent
5. Cabinet Secretariat Notification dated 8th possible, encourage and enable local businesses,
December, 2017. Micro and Small Enterprises (MSEs) and start-
ups to conduct business with the Government.
The GeM Charter captures these elements as a set
of commitments that GeM shall undertake and uphold g) GeM shall in line with tts principles of
going forward: transparency and openness publish a monthly
scoreboard on the platform: GeM shall
a) GeMshall provide acomplete end-to end keep all its stakeholders informed regarding
contactless, cashless and paperless procurement thendevelopment and growth of the GeM
system: GeM shall cover the entire procurement platform by way of ad monthly scoreboard that
process right from vendor registration to order shall cover the following key elements
fulfi llment and payment.
 GMV (Monthly).
b) GeMshallconstantly endeavor to enhance
transparency and effi ciency in the procurement  Number of buyers and sellers.
process: GeM shall bring about standardization
in the procurement process and ensure adherence  Number of product and service
to timely delivery and payment. categories.

c) GeM shall be a trust-based system with minimal  Percentage of orders with delivery and
manual intervention: GeM shall leverage payment within time and ageing.
technology and the existing database with domain
Ministries to ensure ease and convenience in  Percentage of savings achieved.
the processes of registration, procurement

The Institute of Cost Accountants of India 47