L1 Purchase in GeM: Complete Process Guide for Buyers and Sellers on GeM Portal

The L1 purchase in GeM is a fundamental principle governing the procurement process on the GeM Portal. It enables government buyers to procure goods through the GeM L1 purchase procedure system focused on achieving the most competitive pricing. It helps in maintaining transparency and efficiency in Goods purchasing the GeM.

The sellers need to list their products after GeM Registration to participate in the L1 process. The bidder offering the lowest price among all technically qualified bidders is awarded the contract. The system automatically evaluates compliant vendors based on cost, ensuring fair competition, eliminating bias. GeM L1 purchase process helps buyers secure quality products at the best value.

L1 Purchase Criteria on the GeM Portal

The procurement procedure for L1 under the Government e-Marketplace (GeM) portal is the procurement which is made directly when the value of the order lies between ₹50,000 to ₹10,00,000. The L1 purchase limit on GeM is ₹10,00,000. If the GeM L1 purchase limit value exceeds then the bidder needs to make a procurement through either Bid mode or Reverse Auction (RA).

The buyer needs to compare the three different brands, sellers, who have met the necessary criteria like quality, quantity, specification, and the consignee address. The GeM portal will analyze these and recommend the most affordable L1 product.

If there are several products available at the same GeM L1 price point, then the buyer has the freedom to choose any one among those. Moreover, there is no upper limit. The L1 purchase limit on GeM is not bound for automobiles purchased through this category.

1. GeM portal Login - The buyer needs to visit the GeM portal and login with an official id.
2. Product Category Selection
   • Click on Market to see the Product Menu
   • Click on Products to check out the list of products available Or, type in the product you want to search.
   • All the products relevant to the buyer search will be displayed.
3. Filter Selection - Select and apply the required product filters.
   • Product Filters - Administrative (BID/RA, PAC. Difficult Area Local Filter, Locations), Financial, Make/Model Selection, Product Specification.
   • Location Details - The consignee can add the State, location and quantity. There are additional filters for L1 Purchase with Local Filters in Difficult Areas.
   • Make in India - The buyer can select the Make in India option to opt for MII sellers only.
   • MSE filter - The Buyer can select all, SC/ST, Women
4. Product Specification - The Product parameters are divided into Two parameters.
   • Golden Parameters - Specifications marked with yellow are Golden Parameters which are considered for determining L1 for market and value criterion for Bid.
   • Market Search Filters - Specifications marked with grey are market search filters and do not have an impact on GeM L1 Bid Criterion.
5. L1 Product will be shown from GeM Portal Products, based on the filters applied by the buyer for GeM L1 Purchase.
6. L1 Comparison Process - The vendor has to compare the products costing more than ₹50,000 under the L1 purchase limit on GeM.
   • The buyer needs to add 3 different OEM products for comparison.
   • The system automatically identifies and recommends the L1 product that best matches the criteria after the comparison.
   • The products will be displayed based on costing lowest to highest in the comparison sheet.
   • The buyer can check and compare the specifications on the same page of products added.
   • The Buyer can download the Comparison sheet from the cart.
   • The buyer can add the selected L1 Product in the cart after comparison gets completed.
7. Buyer Confirmation - The buyer will be asked the intent of buying - Direct Purchase or Bid/RA. If Buyer chooses any other product than system recommended L1 in tender, Bid/RA would be mandatory. Click on Direct purchase to proceed with L1 Purchase in GeM.
8. Certify Rate Reasonability - The procuring authorities will certify the reasonability of rates as per GFR Rule 149.
9. Purchase Requisition details - The Buyer can update the order details and confirm to proceed further.
   • Material Job Internal Reference No.
   • Delivery Instruction
   • Purchase Requisition details
10. Financial Details - The Buyer need to update the Financial Details including the
    • Select Payment Authority.
    • Designation of official providing Administration approval
    • Designation of official providing financial approval
    • GST / Tax invoice to be raised in the name of Buyer or Consignee
    • Select the Status that - Do you want bill to be processed by Consignee
    • TDS to be collected under - Income tax or GST
    • IFD Concurrence / Competent Authority (HOD / Head of Office) Approval Required?
    • The Amount to be Paid is displayed.
    • Upload the Financial approval Document
11. Verify Order Summary - Read and accept the terms and conditions. The final summary will show the notification number with the Order Summary, Financial details and
12. document attached. The buyer needs to confirm the order with Verify With OTP, Esign Document, DSC Verify
13. Final Submission – The buyer can download the financial details, sanction order and contract order after the successful submission.

The L1 purchase in GeM ensures cost-effective procurement by selecting the lowest compliant bidder. It helps in faster closure of procurement of upto 10 Lacs basis GeM L1 purchase limit. It promotes fair competition, maintains quality standards, and makes sellers adhere to the bid requirements. TendersPlus supports the L1 process, GeM Registration, Product listing and Catalogue management and information services for GeM Tenders. Contact our team at +91 9279921887 or email us @ contact@tendersplus.com to start the L1 Procurement Journey on GeM Portal now!