This guide covers everything you need to know about gem tender bidding faq: 30 questions every seller asks — with practical, actionable information tailored for Indian MSMEs and small businesses.
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Frequently Asked Questions
1 What is the difference between a bid and a reverse auction on GeM?
In a bid (L1), sellers submit their best price once and the buyer evaluates all submissions after the deadline. The seller with the lowest compliant price wins. In a reverse auction (RA), it is a live, dynamic event where sellers can see the current lowest price and keep lowering their own price until the auction time ends. RA is typically used for higher-value procurements.
2 How do I know if I am eligible to participate in a specific GeM bid?
GeM displays eligibility criteria for each bid in the bid document. Common eligibility checks: valid GeM seller account, UNSPSC category matching your listed products, required certifications uploaded, caution money deposited, seller profile completeness above a threshold, and sometimes a minimum turnover or experience requirement. Review these before participating.
3 Is there a limit to how many bids I can participate in simultaneously?
No, there is no limit on the number of simultaneous bids you can participate in on GeM. You can bid on as many tenders as you want across different categories and locations. However, ensure you can fulfill all orders if you win multiple bids — defaulting on won bids damages your seller rating and can lead to blacklisting.
4 What happens if I win a bid but cannot deliver?
Failing to deliver after winning a GeM bid is a serious violation. Consequences include: forfeiture of your Performance Security (if deposited), deduction from caution money, negative impact on seller rating, potential suspension from future bidding, and in severe cases, blacklisting from GeM. Only bid on what you can confidently deliver.
5 How is payment made after a GeM order is fulfilled?
After delivery, the buyer does CRAC (Consignee Receipt and Acceptance Certificate). You submit your invoice on GeM. The buyer processes payment within 10-30 working days after CRAC. If payment is delayed, GeM has an automated penalty system that charges buyers interest on delayed payments. You can escalate through GeM dispute resolution if payment is significantly delayed.