Overview of GeM registration in Mumbai, Maharashtra
Public procurement is a method used by state-owned enterprises and government departments to purchase services and goods for their operational needs from private businesses. But, at times there are higher chances of collusion or corruptive practices taking place in the process. Hence, the Govt of India launched the Government E-Marketplace, an e-marketplace for public procurement from private individuals or businesses following the provisions of the Allocation of Business Rules, 1961 on 9 Aug 2016. It facilitates the union/state Government Departments/Ministries to procure goods/services of the highest quality at reasonable prices within the necessary delivery period from 3lakhs+ sellers listed on the portal.
The primary aim of the GeM is to encourage public participation, allow access to small-scale industries & start-ups to large buyers, ensure faster procurement of goods & services, and above all, bring transparency in the public procurement processes through direct purchase or e-bidding for larger orders in a contactless manner through direct purchase by Government/ Ministries /Departments of Central/State Governments from manufacturers/service providers directly with least interaction possible.
The GeM portal completes control and ownership of the marketplace through a Special Purpose Vehicle, a non-profit company formed under the direction & supervision of the Ministry of Commerce, under the Union Government of India. It overlooks the functionalities of the portal.
For the facilitation of smooth transactions between sellers & buyers, the GeM portal offers tools such as reverse e-auction, e-bidding, and demand aggregation to help government users/buyers get the best value for their money. However, to avail of all the benefits of the GEM, one needs to register themselves as a buyer or seller on the online GEM portal in Mumbai, Maharashtra.
GeM registration in Maharashtra
Maharashtra is a state located in the western peninsula region of India and occupies a substantial portion of the Deccan Plateau. It is India’s second-most populous state, formed on 1st May 1916 by splitting the bilingual Bombay state into Maharashtra and Gujarat. In total, Maharashtra is divided into six divisions and 36 districts, and Mumbai is the capital of Maharashtra. In terms of area, Maharashtra is the third-largest city, bordered by the Arabian Sea, Karnataka, Goa, Telangana, Chhattisgarh, Gujarat, and Madhya Pradesh, and the union territory of Dadar and Nagar Haveli & Daman and Diu.
Maharashtra consists of three international airports: Chhatrapati Shivaji Maharaj International Airport in Mumbai, Dr. Babasaheb Ambedkar International Airport in Nagpur, and Pune airport. Besides this, the state also has four UNESCO World Heritage Sites – Ajanta, Ellora, Elephanta Caves, and the Chhatrapati Shivaji Maharaj Terminus.
Mumbai is the commercial and financial capital of the state. Maharashtra is among the most industrialized states in India and plays a significant role in developing the country’s social and political life. The oldest city in Asia is also located in Mumbai. Maharashtra is the largest contributor to the national economy and is counted among India’s most developed states. Maharashtra holds the largest economy in India, and the service sector is the dominating sector of Maharashtra’s economy.
Capital- Mumbai
The startup ecosystem of Maharashtra
In 2018 the State Government of Maharashtra launched its startup policy called the ‘Maharashtra State Innovative Startup Policy’ to boost the entrepreneurship spirit in Maharashtra. The startup policy of Maharashtra aims to target economic growth and generate employment by encouraging entrepreneurs to design more job opportunities. The startup policy of Maharashtra focuses on biotechnology, artificial intelligence, clean energy, etc. The State Government of Maharashtra aims to build robust incubation and a seed funding mechanism to create a supportive startup ecosystem in the state. The objectives of the startup policy of Maharashtra are as follows: –
Through the startup policy, the state government wants to provide a platform to nurture the entrepreneurial aspiration among the citizen, especially the youth of Maharashtra.
The policy aims to empower startups to contribute significantly to the state’s economy and create employment opportunities for different sections of society.
By designing the startup policy, the government of Maharashtra visions to develop a strong infrastructure with the purpose of easing the regulatory framework to spur the development of the startup ecosystem.
Business ideas in Maharashtra
Maharashtra is counted among the hub of many best industries, and the state is known for its mouthwatering cuisine, beautiful beaches, hills, and rich culture. The financial capital of India, Mumbai, is also located in Maharashtra. Mumbai is a top contributor not only to the state economy but also to the Indian economy. Mumbai is called the ‘City of Dreams’ because many people come to Mumbai with the dream of getting several job opportunities. The state offers employment and job opportunities to a huge section of society. The startup ecosystem of Maharashtra is robust and supportive of the growth of small businesses. If you are thinking of starting a small business in Maharashtra, then below are some best Startup ideas in Maharashtra: –
Dance studio
People come to Mumbai, ‘the city of dreams,’ to get casted in movies. The entertainment industry of Mumbai is one of the top contributors to the state’s economy. The entertainment industry of Maharashtra, particularly Mumbai, consists of actors, dancers, musicians, directors, makeup artists, fashion designers, camera operators, and many more. Those who aspire to become an actor wants to learn dance. Opening a dance academy will be the best business option in Maharashtra if you have a dance background.
Mumbai is the hub of one of the top entertainment Industries called the ‘Bollywood Industry.’ A lot of people around the globe come to Mumbai with a motive to try their luck in the entertainment industry. You need a significant amount of money to open a dance academy in Maharashtra and hire professional and skilled dancers of different dance forms to teach students. Initially, this business will require a lot of effort and energy, but once it is established, it will help you make huge profits.
Textile business
Maharashtra is counted among the largest textile manufacturing states in the country, and cities like Solapur, Bhiwandi, and Malegaon are famous for textile mills. The state offers enormous opportunities to start a textile business. Maharashtra has excellent retail and wholesale textile markets and manufacturers, so it is easy as well as profitable to open a textile business in Maharashtra. For setting up a textile business, you will not require a lot of investment as it is a low-investment business.
Organic stores
The state is counted among the largest agricultural states in India. With growing consciousness towards health, the demand for organic fruits and vegetables is rising day by day. People are trying to change their eating habits and lifestyle and switch to a healthy and environment-friendly lifestyle. They are continuously searching for organic fruits and products and never mind spending some extra penny for organic products. So, setting up organic fruits and products business is a very good idea.
With an increase in the demand for organic fruits, vegetables, and products around the country, the scope of organic farming and related business is also expanding. If you belong from an agricultural background and have some knowledge of organic farming, then you should try your hands at the organic fruits, vegetables, and products business.
Fast food stalls
The Maharashtrian Street food is famous among domestic as well as foreign tourists. The most prominent street food of Maharashtra is vada pav. Besides vada pav, Maharashtra’s other famous street foods are misal pav poha and pav Bhaji. The fast-food business in Maharashtra will help you in yielding huge profits. Maharashtra, particularly Mumbai is full of crowds, so to start a fast-food business, you need to arrange adequate space near railway stations, markets, colleges, schools, etc., to attract the people to your food stall. You can also connect your fast-food business with online delivery companies like Swiggy and Zomato to expand your business. The fast-food stall is a low-investment business and can help you profit considerably.
Salient Features of GeM portal in Mumbai, Maharashtra
- The GeM portal is a simple, convenient & contact-less marketplace that enables the buyers (Govt departments/Ministries/PSUs) to procure goods & services from the sellers who have registered themselves & listed on the portal in an efficient & transparent manner.
- The GeM online marketplace has disrupted the traditional means of public procurement, and the whole concept rests on these three pillars namely- Inclusion, Usability & Transparency; and Efficiency and Cost Savings.
- With tools like reverse e-auction, e-bidding, and demand aggregation, etc. among others, the GeM portal acts as a one-stop-shop that facilitates easier online e-procurement of consumer goods & services as required by various government sectors and departments.
- Registration as either a buyer or a seller is the prerequisite to accessing the GeM portal in Mumbai, Maharashtra. Also, it shall be compulsory for every seller to mention the ‘Country of Origin’ during the registration process, which will be displayed later on the portal. With GeM the Government of India aims to extend its support to smaller businesses and start-ups that can provide better products at reasonable prices.
- The GeM portal eliminates the human interface allowing the buyer to search, compare select from the variety of products, and buy in bulk available on the platform which provides for details such as product details, quantities, etc. including all details required for each product. Similarly, the seller could list the products, and keep a check on the supplies, payments, and price changes as per the requirements and changing needs of the market.
- Since the GeM portal is a completely transparent platform, there are no entry barriers or conditions for seller registration on the platform. The parties to a transaction on any particular transaction on the platform are notified of each progress through SMS and e-mail notifications for each transaction that takes place on the platform.
Important terms under the GeM portal in Mumbai, Maharashtra
i. Buyer – The organizations who are eligible to register as a Buyer and are authorized to procure goods from the GeM portal in Mumbai, Maharashtra–
- Ministries under Central Government/State Government
- Departments under the State government including its subordinate offices.
- Autonomous bodies registered under Union & State Governments
- Central and State autonomous bodies.
- Public Sector Undertakings (PSUs)
- Local bodies.
However, the buyer’s abovementioned shall be required to authorize Government officers/heads of offices as the primary users on the GeM portal in Mumbai, Maharashtra, which includes-
- Any officer of Central Government/State government/ Public Sector Units (PSU).
- Autonomous bodies/ Local bodies/ Constitutional Bodies, or Statutory Bodies at the Deputy secretarial level;
- Head of the office at Sub-Centre/ Unit/ Branch.
It is to be noted that these primary users are only responsible for registering their organizations on the GeM portal, but they are prohibited from participating in the process of procurement and can only be a consignee to receive a service/product. They are required to create user accounts for the secondary users, assign them roles and responsibilities and supervise all secondary users’ transactions on the portal. Secondary users will be responsible for procuring supplies of goods/services and related functions like receipt of stores, placing contracts and making seller payments, etc. The secondary user shall be authorized to use the GeM portal in Mumbai, Maharashtra for such purchases as provided below-
Sum | Manner of Purchase |
Up to Rs. 25000/- | Without any comparison (except automobiles) through the suppliers accessible on the GeM portal those who meet the required specification, quality, and delivery period. |
Rs.25,001- Rs.5,00,000 | L1 purchase by way of direct purchases
through the GeM sellers offering the lowest Price by comparison between at least three different OEMs or service providers on the GeM portal meeting criterion related to the specification, quality, and delivery period. |
Purchases above Rs.5,00,000 | Purchase from the supplier having the lowest price meeting the requisite specification, quality, and delivery period. |
After obtaining bids, the purchases must be made using the reverse auction tool or online bidding provided on the portal (except in the case of automobiles where the applicable limit is Rs. 30Lakh. However, the procuring authorities should certify the reasonability of rates.
ii. Seller – Every seller who wishes to offer his products/services to the buyers on the GeM portal needs to register himself as a listed Seller by making an online application along with the prescribed documents and fees, i.e. commonly known as GeM registration.
In other words, the seller is a legal entity that sells his/her goods or renders services to the buyers registered on the GeM portal in Mumbai, Maharashtra. Any of the following may be registered as a seller on the GeM portal in Mumbai, Maharashtra-
- Sole Proprietorship firm.
- Partnership firm.
- Limited Liability Partnership (LLP).
- Private and public limited company.
- Society registered under the Societies Act.
- Statutory bodies.
iii. Original Equipment Manufacturer – Under the GeM portal in Mumbai, Maharashtra, there are two categories of sellers i.e. OEM (Original Equipment Manufacturer) or an authorized Reseller. While OEM is the actual owner of the trademarked products offered for sale on the portal or such actual manufacturers who do not possess any trademark, whereas reseller is a person/entity having the authorization to sell products manufactured by the OEM in the open market.
Following are the persons who are considered OEMs and can sell products on the GeM portal in Mumbai, Maharashtra:
- Manufacturers
- Brand owners and third-party manufacturing.
- Importer and authorized sellers.
- Service provider.
- Assemblers
Process of GeM Seller Registration Online in Mumbai, Maharashtra
Step 1 – Access the GeM portal in Mumbai, Maharashtra
In the first step of registration, the applicant will be required to access the GeM portal by logging on to (https://gem.gov.in/). On the page, you will find two tabs Seller or Buyer registration, the user will be able to find it right below the “Sign Up” tab, which will redirect him to the page of “terms and conditions” of the website, before, starting the process, go through the module accurately before tapping on the “accept” option.
Step 2- Create a Seller Account on the GeM portal in Mumbai, Maharashtra
The first step towards seller registration on the GeM portal is by creating an account for the prospective seller. Registration on the GeM portal should be done only by an authorized person (Director of the organization or a key person/proprietor). Sellers can sign up on GeM through the Aadhaar/PAN card of the key person of the organization.
Step 3- Update Organization Profile & Fill up the Form in Mumbai, Maharashtra
After acceptance of the terms & conditions on the portal, the user will be redirected to the gem seller registration form. During this, the user will be required to fill in details of the applicant as well as his organization in four main sections- PAN validation, Organization details, office location, and bank account details. Further, there are three operational sections i.e. MSE, Start-up, & Tax Assessment, which need to be completed one by one.
- Jot down the name of the organization correctly.
- Now, the user will be required to choose the type of registration as per his comfortability. i.e. Aadhaar or PAN-based registration and further include personal details such as the Name of the applicant or authorized signatory, card number, DoB, address, etc.
- Next, the user will enter his mobile number details which should be in use, and verify the same using OTP. To receive OTP Tap on the “Send OTP” option. Once OTP is received, enter the OTP in the prescribed section & authenticate it. Similarly, the user has to authenticate his email address.
- Once the user authentication is completed, he can create his username along with the password for accessing the GeM portal & completing the process of GeM seller registration.
After the completion of the user profile on the portal, caution money has to be paid by the seller under the turnover of the entity.
Step 4- Seller Assessment on GeM in Mumbai, Maharashtra
In the next step, the seller needs to apply for seller assessment through the GeM portal to obtain an OEM certificate. Seller Assessment is compulsory for those who wish to participate in public procurement of Q1& Q2 categories of products, which is carried out by the Quality Council of India. Thus, irrespective of the category of products required to be sold on the portal, manufacturers must become OEMs.
Step 5- Listing of the Products/Services to be procured through GeM in Mumbai, Maharashtra
Subsequently, after registration & assessment, the OEM can list his offerings with his brand under the relevant category of products & services. Vendors can list their products whether or not the trademark is registered or not registered on unbranded products. After listing, the products & services of the sellers/vendors will go on live on the GeM website after the GeM authority approves the listing.
Step 6 – Bid Participation & Appointment of Resellers in Mumbai, Maharashtra
After listing the products or services to be procured by the buyers on the platform, any registered seller can participate in the tender & submit quotations and accept orders on GeM. OEMs can submit bids either through themselves or through the authorization of resellers to list their products & services after getting approval.
Next, whenever any buyer buys any products, the concerned seller needs to deliver the product to the consignee when an order is received by entering its details on the portal. After the order is delivered, the consignee will inspect the product and issue acceptance or rejection online. If the consignee accepts the order, he/she will generate a Consignee Receipt and Acceptance Certificate (CRAC).
Once the CRAC is issued, the buyer will process the bill & forward the same to the payment authority post which the payment will be received within ten days of the generation of CRAC.
Caution Money is required to be deposited for GeM Registration in Mumbai, Maharashtra
Caution Money Deposit | Fee |
i. Seller holding an annual turnover lesser than Rs. 1 Crore | Rs. 5,000/- |
ii. Seller holding a turnover above Rs. 1 Crore but lesser than Rs. 10 Crores | Rs. 10,000/- |
iii. Seller holding a turnover more than Crores | Rs. 25,000/- |
Other than this, every seller shall be required to pay a Vendor Assessment Fees which will be equal to Rs. 11,200 + GST |
Documents Required for GeM Registration in Mumbai, Maharashtra
Like any other process of authorized documentation, the user will be required to prepare & keep ready the following documents while filling the form for seller registration on the GeM portal in Mumbai, Maharashtra-
- Proof of identification for the primary user (proprietor/ nominated partner or authorized signatory in case of company/LLP) e. Aadhaar, PAN, etc.
- Certificate of Incorporation of the business organization including Udyog Aadhaar, or LLP-associated requirements
- Verification of the Authorised person of the business organization through Income Tax Return)
- Details of – Registered Office, Billing Address, Factory, Warehouse, other Office Premises
- Bank Account details of the business along with the supporting KYC documents;
- Trademark registration certification;
- Details of communication mobile number & email address as per Aadhaar Card
- MSME registration certificate(where applicable)
- NSIC registration certificate (if applicable)
- The latest copy of ITR (along with the details related to business profits or gains)
It is to be noted that during the process of seller profile assessment if any of the documents submitted are found to possess false information, such applicant will be exterminated from the registration procedure.
Benefits of GeM Portal in Mumbai, Maharashtra
i. Encourages Equal Public Participation in Govt. Tenders– The primary objective behind the launch of GeM is to curb corruptive practices and allow more public participation in Government tenders.
ii. Simple, Convenient & User-Friendly Dashboard- The GeM portal has been designed in a way to simplify end-to-end processes from registration to transaction between sellers & buyers on the platform, which could be completed the conveniently at any place by any applicant in India. Further, with new tools like e-bidding, auction, payment, contract management, etc. the process has been made more effective as well as efficient.
iii. Allows greater benefits for the buyers- The GeM portal also allows several benefits for the buyers including-
- Opportunity to get the best from the variety of offerings available from the sellers at reasonable prices through e-bidding from more than 3Lakh sellers;
- Longer bidding duration between 10-21 days;
- Pin-code-based seller choice for direct purchases;
- Availability of ATC library for the addition of terms and conditions;
iv. Benefits to SMEs & Start-ups– The GeM portal also allows benefits to small-scale industries & start-ups with features such as –
- Allowing Direct purchases up to Rs. ₹25,000
- L1 purchases for sums between ₹25,000 – 5 Lakhs rupees.
- Enables price comparisons and price trends between Multiple Suppliers
- Allows Integrated Payment Systems & notifications to suppliers directly.
v. Complete Online security – The GeM portal safeguards sensitive information related to both parties through its secure platform. It also takes effective measures such as e-verification of documents & e-signed digitally at each stage.
vi. Effective Grievance Redressal Mechanism – GeM portal allows a quick & effective online grievance redressal mechanism between parties online.
vii. Introduction of new features for OEMs- In order to afford more convenience for OEMs, there have been certain new features introduced through the portal which include additional enhanced parameters in the existing report apart from the new chart widgets in agreement with the OEM & MAIT recommendations.
viii. Benefits for Sellers-
- Direct Access To The Largest Buyers In The Country
- PAN (Presence across Nation) India Reach With Minimal Marketing
- Direct Purchase, Bids, And Reverse Auctions
- Dynamic Pricing Based On Market Conditions
- Multi-Lingual Support Desk
Make in India (MII) Certificate for OEMs in Mumbai, Maharashtra
Through a circular no. P-45021 was notified on 04.06. 2020, the Department of Promotion of Industry & internal trade, under the Government of India declared a ‘Make in India’ certificate to be issued to the sellers in Mumbai, Maharashtra encouraging the Make in India initiative & promoting the manufacturing and production of goods & services in India and further create employment opportunities & enhance the income of the population. The sellers having the Make in India certificate will be given more preference during L1 (lowest bidding) during receiving bids for the tenders. Additionally, local suppliers holding a Make in India certificate on the GeM will also be given preference under other categories.