GeM order process after you win: ePBG, delivery, CRAC, invoice and payment

Winning the bid is the halfway mark. What follows on GeM is a fixed sequence: the contract, the performance security, delivery, the invoice, the consignee's receipt and acceptance certificates, and payment, each with its own deadline. This guide walks through the GeM order process from the seller's side, from GeM's General Terms and Conditions (GTC version 1.29, 25 March 2026), seller FAQs, training guides and its incident management policy (version 14.10, in force from 9 June 2026).

The GeM order process at a glance

The contract terms, special terms or the bid's additional terms (ATC) can change these timings, and the ATC wins where they conflict.

Step 1: The contract arrives

A GeM contract is made up of the scope of supply and price in the contract document, the GTC, the category's special terms (STC), the service level agreement (SLA) for services, and the bid's ATC. Download it from Order → View Details → Download Contract.

Bid and RA orders. GeM's FAQ is clear: "All Orders placed through Bid/RA are deemed accepted", because you agreed to the terms when you took part. There is no accept button.

Direct purchase and L1 orders. When you list a product and keep its stock updated, you agree to accept these orders without further confirmation; declining one can bring action under GeM's incident management policy. You may accept or decline only if the buyer is red-flagged or the order is freight-intensive. You get 120 hours to decide, after which the order is accepted automatically.

GeM shows a buyer's payment record in the buyer details. Orange means more than 20 orders unpaid for more than 70 days after CRAC; Red, more than 30. GeM says sellers are not penalised for rejecting orders from Red buyers.

Step 2: ePBG and GeM charges in the first 15 days

Performance security (ePBG)

Bid and RA contracts can ask for performance security of up to 5% of the contract value; direct purchase, L1 and push button procurement orders need none. Under clause 7 of the GTC:

• Submit it within 15 days of the award. Download the ePBG request document from the order, get your bank to issue the guarantee, then upload it under ePBG details → Verify. GeM also offers an e-BG facility through NeSL.
• It must stay valid for 2 months beyond the completion of all your obligations, warranty included.
• No ePBG, no payment. Payment falls due only after the buyer receives and verifies it, and if you don't upload it the buyer can deduct the same amount from your bill.
• It comes back within 30 days of completing all obligations, without interest. Your EMD is returned within 15 days of the buyer receiving the ePBG.

Failing to give it in time can forfeit your EMD and is a "Severe" deviation under the incident policy. More on forms and amounts in performance security in tenders.

Transaction charge and annual milestone charge

If your orders this financial year have crossed ₹20 lakh, GeM's revenue policy (version 1.6) applies its charges (rates here). You can generate the invoice for the charge within 5 days of the award; after that GeM generates it on your default GSTN. You must pay within 15 days of the award, before your first invoice to the buyer, or by the first delivery date, whichever is earliest. An unpaid charge brings action under the incident policy, and GeM's FAQ says the buyer can cancel the contract over it.

Step 3: Supply and delivery

• Delivery is at the consignee's site, with loading and unloading, and installation or commissioning if the item needs it, all inside your price.
• The delivery period is "the essence of the Contract" (GTC clause 14). In staggered orders, each lot has its own dates.
• Send a proper GST invoice with the goods. GeM's online bill doesn't replace it. GeM's FAQ adds that an e-way bill is mandatory when the goods transported are worth more than ₹50,000.
• Upload proof of delivery (POD) within the active delivery date. GeM's PRC/CRAC training guide says the automatic PRC and CRAC don't work otherwise.

Running late: extension and liquidated damages

Raise a delivery period extension request on GeM as early as you can. GeM's FAQ says you can ask more than once and the buyer has to respond within 5 days. Under GTC clause 15:

• Re-fixation, without penalty, is for delays caused by the buyer or consignee, or by force majeure (notified with evidence within 10 days).
• Extension with liquidated damages (LD) is for other delays. You can't raise your price during the extension.
• LD is 0.5% of the value of the delayed quantity for each week or part of a week, up to 5% of the total contract value. If the delay is more than a quarter of the delivery period, it counts as inordinate and the cap rises to 10%.

Example. On a ₹4,00,000 contract, goods worth ₹1,00,000 arrive 2 weeks and 3 days late. That counts as 3 weeks: 0.5% × ₹1,00,000 × 3 = ₹1,500. The ceiling would be 5% of ₹4,00,000, or ₹20,000.

Step 4: Generate the invoice on GeM

1. Open Order, search the order number and click View Details.
2. Click Generate and enter the supply quantity and tax details (CGST, SGST, cess).
3. Check everything and click Create.

Things to know from GeM's FAQ:

• You can raise several invoices for one order; a staggered order needs at least one per lot. A lot appears only while its delivery period is active.
• After creation you can edit only the supplier invoice number, mode of dispatch and billing address.
• Uploaded files must be under 10 MB, with no special characters in the name.
• GST e-invoicing applies if your aggregate turnover exceeds ₹5 crore.

Step 5: PRC and CRAC, the consignee's certificates

PRC (provisional receipt certificate). The consignee records the quantity received on GeM. If you have uploaded POD, GeM generates the PRC on the 4th day and the consignee then has 2 days to modify or confirm it.

CRAC (consignee receipt and acceptance certificate). The consignee may inspect the goods and must accept or reject them, with reasons, within 10 days of receipt unless the STC or ATC says otherwise. The CRAC records accepted and rejected quantities and "will form the basis of Payments" (GTC clause 11).

Auto CRAC. If the consignee doesn't complete the CRAC in time, GeM generates it. The default is 10 days from the PRC (or from your POD if the PRC was automatic). In bids with post-dispatch inspection, the buyer sets the number of auto CRAC days within the category's limits, and it is printed in the contract.

Services use the SDAC (service delivery acceptance certificate). The buyer can reject a service within 10 days of receiving it, counted from your invoice date or the service completion date, whichever is later.

Step 6: The GeM payment process

GTC clause 12 sets the payment terms, unless the STC or ATC says otherwise:

• Goods: 100% within 10 days of the CRAC and online submission of bills.
• Services: 100% of monthly bills within 10 days of the SDAC and online bills.

The buyer drafts the bill from the CRAC; for PFMS payments the DDO then processes it. Money goes to the bank account marked Primary in your profile, once PFMS has verified it. GeM's system suggests the LD amount, and the buyer can lower it but not raise it above the suggestion. You can see the CRAC and payment status under Shipment wise → View Details in the order.

Interest on late payment. GeM's buyer FAQ says that if payments are not made as per the government's orders, GeM applies interest of 1% per month on the buyer organisation for delayed payments. Micro and small enterprises also have rights under the MSMED Act, 2006, which our MSME benefits guide covers.

When payment is late

1. Raise an incident on the buyer for "Delay in payment post CRAC generation" (or post SDAC). You can raise it once the CRAC or SDAC exists, until the payment shows as Completed. If you have no CRAC yet, raise "Delay in CRAC generation" instead.
2. Wait for the outcome. The buyer gets 7 days to resolve it, then you can escalate it to GeM, which issues a show cause notice.
3. Once the incident status is "Took Action", send the GeM helpdesk your contract copy, CRAC or SDAC, invoice and a screenshot of that incident status. Under GeM's Payment Escalation SOP (effective 1 March 2025), a payment monitoring team contacts the buyer within 3 working days, then a nodal officer of the state or ministry, and finally GeM issues a demi-official letter to the buyer.
4. After the letter, GeM's FAQ asks you to wait 7 working days, then deal directly with the buyer or use the dispute clause (GTC clause 16). GeM is not a party to contract disputes.

The timelines in the SOP are indicative. Contact details are in our GeM helpdesk guide.

Rejection and returns

• No payment for rejected goods or services.
• Collect rejected goods within 10 days at your own cost, or pay ground rent; after a reasonable time the consignee can dispose of them at your risk and cost.
• Replace or rectify through a supplementary invoice. GeM offers rectification at the consignee's end, rectification or replacement at your end, or a mix.
• Warranty: one year from final acceptance unless the category or bid says longer. Defects found in that period must be rectified or replaced within 7 days of the buyer's call, and spares must be available for three years after warranty ends.

Cancellation of a GeM order

• By the buyer, for your default. If you don't deliver within the original, extended or re-fixed date, the buyer can cancel the unsupplied part, forfeit your performance security, and GeM can lower your rating or debar you (GTC clause 19).
• By the buyer, without your fault. A buyer cancelling after you accepted is an incident you can raise against the buyer; upload the cancellation letter or email. If the buyer cancels for its own reasons, such as ordering by mistake, the revenue policy lets you claim back the transaction charge.
• By you: partial order closure. If you can't supply everything, request closure of the un-invoiced quantity. The buyer accepts or rejects it, and a request it ignores for 15 days is auto-cancelled. Once the delivery period has expired, a buyer's own partial closure is approved automatically.

Incident management: what seller defaults cost

GeM's incident management policy grades deviations as Mild, Serious, Severe or Grave. Some post-contract examples from its Annexure 1:

How an incident runs. The buyer raises it, and you have 7 calendar days to put things right. If not, the buyer escalates and GeM sends a show cause notice (SCN), which you must answer on the incident dashboard within 5 calendar days; with no response after 10 days, the system acts automatically in many cases. You can also offer to rectify within 5 days of the SCN, and the buyer has 5 days to consent. If the problem is fixed, you can ask for mutual closure, once from the buyer and once from its head of department.

Suspension if your explanation isn't accepted (for Mild to Severe cases GeM calls it a temporary moratorium):

A Grave deviation brings 365 days, and with the approval of GeM's Chief Marketplace Officer a suspension can run up to 2 years. A suspended seller can't bid and loses its catalogue, but can still complete and be paid for contracts already concluded. Sellers with at least 20 contracts in the past year and a strong fulfilment rate get a shorter period: a 98% fulfilment rate cuts it to 30% of the normal length. Action for an unpaid transaction charge is lifted within 24 hours of payment.

Checklist after you win a GeM order

1. Download the contract and read the delivery dates, consignees, ePBG percentage, inspection type and auto CRAC days.
2. Pay any transaction charge before your first invoice or delivery date.
3. Upload the ePBG within 15 days, and ask the buyer to verify it.
4. Plan delivery with your price covering freight, loading and installation; book an extension early if needed.
5. Generate the GeM invoice, send the GST invoice and e-way bill with the goods.
6. Upload proof of delivery within the delivery period.
7. Watch your dashboard daily for PRC, CRAC, queries and incidents; GeM's GTC makes this your responsibility.
8. Chase payment after 10 days with an incident, then the helpdesk escalation.

Looking for the next order? You can browse live GeM bids on GovtTenderHub, and our guides cover bidding on GeM and GeM reverse auctions.

Common questions

What is CRAC in GeM?

The consignee receipt and acceptance certificate. The consignee issues it on GeM after checking the goods, recording what was accepted and rejected, normally within 10 days of receipt. Your payment is based on it.

What is the difference between PRC and CRAC?

The PRC (provisional receipt certificate) only confirms that goods arrived. The CRAC comes after inspection and records acceptance or rejection. Payment is due from the CRAC, not the PRC.

How many days does GeM take to pay a seller?

The GTC says 100% within 10 days of the CRAC and your online bill for goods, or of the SDAC for services, unless the contract's own terms say otherwise. Payment waits for the ePBG where one was required.

Can a seller cancel a GeM order?

Not an order from a bid or RA, which is deemed accepted. You can request partial closure of quantity you can't supply, which the buyer must approve. Non-delivery after a bid can lead to suspension.

What if the buyer does not generate the CRAC?

If you uploaded proof of delivery within the delivery period, GeM generates the CRAC automatically after the set number of days (10 by default). You can also raise an incident for "Delay in CRAC generation".

Is there a penalty for late delivery on GeM?

Yes: liquidated damages of 0.5% of the value of delayed goods per week or part of a week, capped at 5% of the contract value, or 10% for inordinate delays.