The Government e-Marketplace (GeM) has revolutionized procurement for government buyers and sellers in India, ensuring transparency, efficiency, and timely payments. Understanding GeM’s payment process is crucial for businesses participating in government tenders. This blog will walk you through the complete journey from invoice generation to final settlement.
Step 1: Order Fulfillment
The payment process begins once a seller successfully delivers goods or services as per the terms of the contract. Upon completion of delivery, the seller must update the order status on the GeM portal and generate an invoice.
Step 2: Invoice Generation and Submission
After order fulfillment, the seller generates an invoice through the GeM portal. The invoice should comply with GeM’s invoice format, including details such as order ID, product or service details, GST details, and total amount. The invoice is then submitted electronically on the platform.
Step 3: Buyer’s Acceptance
Once the invoice is submitted, the buyer (government department or entity) verifies the delivery and cross-checks the invoice against the received goods/services. If everything aligns with the order specifications, the buyer accepts the invoice within a stipulated timeframe.
Step 4: Online Bill Processing
Upon invoice acceptance, the buyer’s finance department initiates the bill processing. This includes verification of budget allocation, approval from relevant authorities, and compliance with government financial guidelines. The bill is then forwarded to the Public Financial Management System (PFMS) for further processing.
Step 5: Payment Disbursement via PFMS
The Public Financial Management System (PFMS) plays a pivotal role in ensuring seamless payment transactions. Once the bill is approved, the PFMS facilitates direct bank transfers to the seller’s registered bank account, ensuring timely and transparent disbursement.
Step 6: Settlement Confirmation
After the payment is processed, the seller receives a settlement confirmation from the GeM portal. The amount is credited to the seller’s bank account, marking the successful completion of the transaction.
Key Points to Ensure Smooth Payment Processing:
- Ensure accurate and timely invoice submission.
- Maintain compliance with GST and GeM invoice guidelines.
- Follow up with the buyer for timely invoice acceptance.
- Track payment status on the GeM portal and PFMS.
By understanding and adhering to GeM’s payment process, sellers can experience hassle-free transactions and timely payments, making government procurement a more efficient and rewarding experience.
