Consignee

The Consignee in Indian government procurement is the designated officer, unit, or department authorized to receive goods or equipment on behalf of the government. The Consignee's acceptance of the delivery, confirmed through a Consignee Receipt and Acceptance Certificate (CRAC), is typically the trigger for the supplier's right to raise an invoice.

What is a Consignee?

In government goods procurement, the NIT and Supply Order specify a Consignee, either by name, designation, or unit, to whom the goods must be delivered. Common consignees include: the Head of the user department, the stores officer of an institution, the logistics officer of a military installation, or the officer-in-charge of a laboratory.

The Consignee's responsibilities include:

• Physically receiving the goods at the specified delivery location
• Verifying that the quantity delivered matches the Supply Order quantity
• Checking that the goods match the specifications (often with support from an Inspecting Authority or quality officer)
• Issuing the Consignee Receipt and Acceptance Certificate (CRAC)
• Reporting shortages, damages, or quality defects through a formal rejection/discrepancy note

The CRAC issued by the Consignee is a critical document, without it, the supplier cannot process their invoice for payment. It also establishes the date of delivery, which is the starting point for the warranty period.

In centralized procurement (where DGS&D or a central ministry buys for multiple end-users), the Consignee may be a remote institution that receives goods directly from the supplier. The supplier is responsible for transporting goods to the specified Consignee address, and delivery risk remains with the supplier until the Consignee accepts the goods.

On GeM, the CRAC function is replaced by the "Consignee Acceptance" action on the portal, the buyer must accept delivery within the specified auto-acceptance period (typically 10 days) or rejection is automatic.

Why the Consignee matters for Indian government suppliers

The Consignee acceptance is the event that triggers payment eligibility. Suppliers must ensure goods reach the Consignee in good condition, deliver complete as per the Supply Order, and obtain the CRAC promptly. Partial deliveries without the Consignee's agreement may not be accepted. Defects discovered by the Consignee at delivery can result in rejection, adding significant time to the payment cycle.

Example

A supplier wins a central purchase organization tender to supply IT peripherals to 12 institutions across India. Each institution is named as a separate Consignee in the Supply Order. The supplier dispatches goods to each Consignee with the delivery challan citing the Supply Order number. Each Consignee verifies receipt, performs basic functional checks, and issues a CRAC. The supplier collects all 12 CRACs and submits a consolidated invoice to the paying authority. Payment is processed based on CRAC confirmation from each Consignee.

Frequently Asked Questions

What happens if the Consignee refuses to accept the goods?

If the Consignee rejects goods for legitimate reasons (wrong specification, quantity shortfall, physical damage), the supplier must either replace the rejected goods or rectify the deficiency within the stipulated time. If the rejection is wrongful (the goods meet all specs but the Consignee refuses for administrative reasons), the supplier can escalate to the purchasing authority for adjudication. All rejections must be formally documented.

Can the Consignee be a third party (not a government entity)?

In some externally-aided or PSU projects, the Consignee may be a project management consultant or a private entity authorized to receive goods on behalf of the government. The key requirement is that the designated Consignee in the contract be clearly identified, and the supplier should verify this before dispatch.

What is auto-acceptance on GeM?

On GeM, if a buyer (Consignee) does not take any action, neither accepting nor rejecting the delivery within 10 days of the supplier marking the order as delivered, the system auto-accepts the delivery, triggering payment processing. This prevents indefinite delay in acceptance but also means Consignees must actively monitor and reject genuinely defective deliveries within the 10-day window.

Is the Consignee the same as the Inspecting Authority?

Not always. In some procurements, there is a separate Inspecting Authority who independently inspects goods before or at delivery. The Consignee receives and the Inspecting Authority certifies quality compliance. In simpler procurements (especially on GeM), the Consignee performs both roles.