Introduction
The Government e-Marketplace (GeM) stands as India’s premier digital procurement platform—delivering efficient, transparent, and inclusive public procurement. According to its foundational mandate, every transaction and contract executed through GeM is governed by a hierarchy of terms and conditions. These include General Terms and Conditions (GTC), Special Terms and Conditions (STC), and Additional Terms and Conditions (ATC)
For both buyers and sellers, a deep understanding of GeM’s T&C isn't merely procedural—it’s critical. Annotations in platforms like BidAssist describe these T&C as “the backbone of the entire procurement process,” defining eligibility, delivery, pricing, penalties, and more.
1. The T&C Framework on GeM
1.1 General Terms and Conditions (GTC)
GTC forms the foundation of GeM transactions. Published as an electronic record, GTC binds both parties—the seller and the buyer—under the scope of the IT Act, 2000, and aligns with prevailing laws in India.
These terms define the scope, legal validity, user obligations, and system-wide mechanisms such as e-bidding, reverse auctions, and incident response .
1.2 Special Terms and Conditions (STC) & Service Level Agreements (SLAs)
Beyond the baseline GTC, STCs and SLAs specify category-specific details for product functionality, service expectations, performance metrics, and enforcement procedures.
In cases where STC or SLA clauses conflict with GTC, the more specific STC takes precedence, and similarly, ATCs override both GTC and STC for precise bid-level stipulations.
1.3 Additional Terms and Conditions (ATC)
ATCs are tailored for specific bids—think price fall clauses, warranties, delivery penalties, or inspection protocols. They supplement GTC and STC and are prioritized when discrepancies arise.
2. Key Clauses Sellers Should Know
2.1 Registration and Accountability
Once on GeM, sellers automatically agree to abide by GTC, STC, SLA, and ATC depending on transactions.
Primary users (e.g., Directors or Partners) are responsible for registration and data accuracy; any inaccuracies or failures may lead to suspension or debarment.
2.2 Product Listings & Forbidden Violations
Sellers must ensure accuracy in product specs, pricing, and de-list freebies. Posting refurb-certified, inaccurate, or counterfeit listings violates GTC and may trigger administrative actions.
2.3 Pricing Policies
Prices must be:
All-inclusive (INR stated in words and digits).
Not exceed the MRP or prices on other e-commerce channels.
After selection, valid for a minimum five days for contractual execution—even if the seller updates the price later.
Violations lead to recovery and possible blacklisting.
2.4 Digital Signatures and Contracts
All offers and resulting contracts must be digitally signed using a Class 3 Digital Signature, and are binding from award on a GeM-defined timeline.
2.5 Performance Security & Liability
In reverse auctions or high-value bids, a Performance Bank Guarantee (PBG) up to 5% may be mandated. Sellers, resellers, and OEMs share collective responsibility for contract performance.
2.6 Taxes & Variances
Prices must include all relevant duties, taxes, and statutory obligations. Any price variation during delivery is regulated by contract terms.
2.7 Deviation and Incident Management
GeM enforces infractions under an Incident Management Policy, enabling automated penalties for deviations like late delivery, mismatched specs, or document issues.
3. Crucial Points to Avoid Penalties
BidAssist underscores key areas where sellers often falter:
- Eligibility conditions such as MSME status or turnover.
- Delivery timelines & liquidated damages (commonly 0.5% per week).
- Warranty requirements, typically at least one-year.
- Price validity, usually a minimum of 180 days.
- Understanding payment terms—only e-payments permitted; no cash or cheque allowed.
- Termination policies include blacklisting for repeated default.
- Interpretation of Force Majeure, Risk Purchase, and Exit Clauses.
4. Buyer-Side Additions and Implications
Buyers may include further clauses that sellers must follow:
Pre-delivery inspections, enabling or disallowing partial fulfillment.
Extended warranties or additional penalty clauses customized per project.
Sellers should always verify buyer-specific terms to ensure compliance and avoid surprise penalties.
5. Why GTC Matters for Sellers
Understanding GTC and related terms benefits sellers in several key ways:
Benefit | Description |
Legal Protection | Complies with regulations; avoids bid rejection or blacklisting. |
Risk Management | Clarifies penalties, warranties, and dispute resolution clauses. |
Competitive Advantage | Enables better bid alignment with contract requirements. |
Long-Term Thrive | Boosts credibility and repeat tenders from buyers. |
BidAssist calls GTC the bid’s backbone—non-compliance is a common reason for rejection and blacklisting, while compliance boosts credibility.
Summary Table: Hierarchy of GeM T&C
Level | Description |
GTC | Applies universally across GeM. |
STC / SLA | Applies to specific products/services; overrides GTC. |
ATC | Bid-specific terms; overrides both STC and GTC. |
Buyer's Additional Clauses | Specific to particular tenders; override above levels as applicable. |
Conclusion
Mastering GeM's terms and conditions is not optional—it’s essential for success. From price mandating, performance guarantees, and taxes, to tax certification, digital signatures, and incident policies, each clause shapes the bidding landscape.
A seller who meticulously aligns with GTC, STC, SLAs, ATC, and buyer-specific terms not only avoids pitfalls but also positions themselves for repeat contracts, transparency, and long-term growth on the GeM platform.
