This guide covers everything you need to know about gem portal glossary: 60 terms every seller must know — with practical, actionable information tailored for Indian MSMEs and small businesses.
Terms Starting with 'A'
Advance Payment: Payment made by the government buyer before delivery. Rare on GeM — most payments are made after delivery and CRAC acceptance.
Authorized Dealer: A business certified by a brand/OEM to sell their products on GeM. Required when listing branded products as a reseller.
Aggregate Demand: Total combined demand for a product across multiple government departments, often procured through a single tender.
Terms Starting with 'B'
Bid: A formal offer by a seller to supply goods or services at a specified price. GeM bids are time-bound and competitive.
BIS: Bureau of Indian Standards. BIS certification (ISI Mark) is mandatory for certain product categories on GeM including electrical goods, steel, and safety equipment.
Blacklisting: Permanent ban from GeM portal for serious violations — supplying substandard goods, fraudulent practices, or repeated delivery failures.
Terms Starting with 'C'
Caution Money: Refundable security deposit paid by all GeM sellers before listing products. Amount: Rs.5,000 to Rs.25,000 based on annual turnover. Refunded on account closure.
CRAC: Consignee Receipt and Acceptance Certificate — the document signed by the government buyer confirming they have received and accepted the goods. Payment is triggered after CRAC.
Custom Bid: A procurement method where the buyer specifies exact requirements and sellers submit their offers. Used for specialized or configured products.
Terms Starting with 'D'
Direct Purchase: Purchase of listed products without any bidding process, allowed for orders up to Rs.25,000 per product per seller. Buyer directly places order on catalogue listing.
DPIIT: Department for Promotion of Industry and Internal Trade. DPIIT-recognized startups get special privileges on GeM including turnover exemptions.
DSC: Digital Signature Certificate. Not required for basic registration but needed for high-value bids and certain formal procurement processes.
Terms Starting with 'E'
EMD: Earnest Money Deposit — security deposit paid by bidders to show serious intent. MSME sellers are exempt from EMD in many tenders on GeM.
ePBG: Electronic Performance Bank Guarantee — digital bank guarantee for contract performance. Required for high-value orders on GeM.
Terms Starting with 'G'
GeM: Government e-Marketplace — India's official online procurement platform launched in 2016. gem.gov.in is the official URL.
GeM ID: Unique identifier assigned to every registered seller on GeM portal. Your GeM ID is used in all transactions and communications.
GFR 2017: General Financial Rules 2017 — government procurement rules that mandate GeM usage as the primary procurement channel for common goods and services.
Terms Starting with 'L'
L1: Lowest Bidder 1 — the seller quoting the lowest price in a competitive bid. L1 gets the order in standard procurement.
L1 Matching: Process where all other MSME sellers are given the opportunity to match the L1 (lowest) price. If an MSME matches L1, they get preference over non-MSME L1.
Terms Starting with 'M'
Make in India: Government initiative promoting domestic manufacturing. GeM has special filters for Made in India products, giving preference in many procurement categories.
MSME: Micro, Small and Medium Enterprise. Businesses with investment up to Rs.50 crore and turnover up to Rs.250 crore. MSMEs get special benefits on GeM.
Terms Starting with 'O'
OEM: Original Equipment Manufacturer — a business that manufactures products under its own brand. OEMs can register their brand on GeM for exclusive listing rights.
OEM Panel: A list of approved OEMs for specific product categories. Being on the OEM panel gives direct purchase eligibility without bidding for many government departments.
Terms Starting with 'Q'
QCI: Quality Council of India — the organization that conducts vendor assessment for certain GeM product categories. QCI assessment ensures quality standards are met.
Quality Mark: A certification seal indicating a product meets specific quality standards. Examples: BIS ISI Mark, Agmark, FSSAI for food products.
Terms Starting with 'R'
RA: Reverse Auction — a dynamic bidding process where multiple sellers compete by progressively lowering their price within a time window. The lowest price at the end of the auction wins.
Rate Contract: A pre-negotiated agreement with fixed prices for specific goods or services, valid for a set period. Buyers can directly order at contracted rates without further bidding.
Terms Starting with 'U'
Udyam: India's official MSME registration portal (udyamregistration.gov.in). Udyam certificate proves MSME status and unlocks GeM benefits for small businesses.
UNSPSC: United Nations Standard Products and Services Code — a global classification system used by GeM to categorize all products and services. Choosing the right UNSPSC code is critical for product discoverability.
Terms Starting with 'V'
Vendor Assessment: Quality verification process conducted by QCI for certain GeM categories. Includes inspection of manufacturing facilities, quality control processes, and product samples.
Vendor Rating: Performance score given to sellers based on order fulfillment rate, delivery timeliness, and buyer feedback. Higher ratings increase visibility and trust on GeM.
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Frequently Asked Questions
1 What does L1 mean in GeM portal?
L1 stands for Lowest Bidder 1 — the seller who quotes the lowest price in a GeM competitive bid. The buyer typically places the order with the L1 seller, subject to their meeting all quality and specification requirements. In MSME preference scenarios, MSMEs who match the L1 price get priority over non-MSME L1 sellers.
2 What is caution money on GeM portal?
Caution money is a mandatory refundable security deposit that all GeM sellers must pay before they can list products or bid on tenders. It ranges from Rs.5,000 to Rs.25,000 based on annual turnover. It ensures only serious sellers participate and is fully refunded when you deregister from GeM.
3 What does CRAC mean in GeM?
CRAC stands for Consignee Receipt and Acceptance Certificate. It is the document signed by the government buyer after receiving and inspecting your delivered goods. CRAC is the trigger for payment — your invoice cannot be processed until CRAC is completed by the buyer.