CRAC (Consignee Receipt and Acceptance Certificate)

A CRAC, or Consignee Receipt and Acceptance Certificate, is a formal document issued by the designated government officer at the receiving end of a supply order confirming that the ordered goods have been physically received, inspected, and accepted as conforming to the specifications and quantity specified in the purchase order. On GeM and other e-procurement platforms, the CRAC is the trigger document that authorises payment to the supplier. Without a completed CRAC, the buyer cannot process the payment, regardless of whether the goods have been delivered.

What is a CRAC in government procurement?

When a government buyer places an order through GeM or another procurement mechanism, the supplier delivers the goods to the consignee, who is the government officer at the delivery location. The consignee inspects the delivery against the purchase order, checks quantities, verifies that specifications are met, and confirms that the goods are in usable condition.

If the delivery is satisfactory, the consignee issues a CRAC. On GeM, this is done directly within the portal: the consignee logs into GeM, navigates to the relevant order, and issues the acceptance digitally. The system records the date and the consignee's identity. Once the CRAC is issued in the GeM system, the payment process is initiated automatically.

If the delivery is deficient, the consignee may issue a partial acceptance or reject the delivery entirely. A partial acceptance records the quantity actually accepted and triggers payment only for the accepted portion. A full rejection triggers a return and replacement process, with the supplier expected to re-deliver compliant goods within the stipulated time.

Before GeM digitised this process, acceptance certificates existed as paper documents in various forms across different procurement systems, including inspection reports, delivery challans countersigned by the consignee, and store receipt vouchers. GeM standardised this into the CRAC terminology and process.

For goods under warranty or with a mandatory inspection requirement, the CRAC may also certify that the goods were accompanied by the required warranty certificate, test certificates, or certificates of conformity.

Why it matters for bidders

CRAC is the payment trigger. Until the consignee issues the CRAC on GeM, payment is blocked in the system. This creates a practical dependency on the consignee's promptness. Delays in CRAC issuance translate directly into delayed payment, which affects the supplier's working capital.

Common causes of delayed CRAC issuance include the consignee officer being transferred or on leave, the delivery being partially accepted pending re-delivery of deficient items, administrative delays in the consignee's office, or the consignee not being fully familiar with the GeM portal process. Suppliers should follow up proactively with the consignee after delivery to ensure the CRAC is issued promptly.

If a consignee unreasonably delays CRAC issuance despite satisfactory delivery, the supplier can escalate through the buyer organisation's procurement officer or raise a complaint through GeM's grievance mechanism. GeM has built-in timelines by which the consignee is expected to issue the CRAC after delivery, and delays beyond these timelines are tracked in the system.

Example

A furniture supplier receives an order on GeM from a central government school for 100 chairs and 25 tables. The supplier delivers the items to the school's storage room and hands over the delivery challan to the Principal, who is the designated consignee. The Principal inspects the furniture, counts the items, and confirms they match the order specifications in material, dimensions, and finish. The Principal logs into GeM and issues the CRAC digitally. The GeM system records the acceptance and initiates the payment process. The payment reaches the supplier's bank account within the portal's standard payment timeline after CRAC issuance.