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GeM direct purchase vs L1 vs bid

The three ways buyers purchase on GeM and what each means for sellers.

4 min read · Last updated: 10 October 2026

Central government buyers follow Rule 149 of the General Financial Rules (GFR) 2017 for GeM purchases. The value limits were raised by an amendment in 2024.

Purchase valueModeWhat it means for sellers
Up to ₹50,000Direct purchaseBuyer can order from any seller that meets quality, specification and delivery needs. A good catalogue and fair price matter most.
₹50,000 to ₹10 lakhL1 purchaseBuyer compares offers of at least three manufacturers and orders from the lowest-priced seller. Bidding or RA may also be used.
Above ₹10 lakhBid / reverse auctionMandatory online bid or reverse auction. Documents and eligibility decide who qualifies.

What this means for you

  • Small orders come from your catalogue. Keep listings complete and prices competitive.
  • Larger orders come from bids. Watch bids in your category daily and keep documents ready.
  • State government buyers may follow their own state rules, so limits can differ.

Limits as per the GFR amendment of 2024. Confirm the current rules before acting.

Sources

SoftTender is a private consultancy. We are not affiliated with GeM, CPPP, NSIC or any Government department. Registration on official portals such as GeM is free; we charge only for our assistance service. We do not guarantee that any tender will be awarded.

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