GeM Carting Restriction

GeM Carting Restriction is a platform-level control on the Government e-Marketplace that restricts a buyer from adding items to a purchase cart in a way that would split what is effectively a single requirement into multiple smaller orders, each falling below the threshold that would require a competitive bid. It is one of several technical guardrails GeM uses to prevent the misuse of direct purchase provisions.

What is GeM Carting Restriction in government procurement?

On GeM, procurement thresholds determine the buying method. Purchases up to Rs 25,000 can be made directly from any listed seller (direct purchase from catalog). Purchases from Rs 25,000 to Rs 5 lakh require a comparison of at least three sellers, with award to the L1. Above Rs 5 lakh, a competitive bid or reverse auction is required.

Carting restriction addresses the temptation to place multiple orders, each below a threshold, for what is effectively the same annual or periodic requirement. Without this control, a buyer needing 200 office chairs worth Rs 15 lakh total could place 10 separate orders of 20 chairs each, each below the L1-comparison threshold, all from the same preferred seller, bypassing competition. This is a form of bid splitting and violates the spirit of GFR 2017 and CVC guidelines.

GeM's carting restriction works by: tracking the buyer's orders for similar items over a rolling period, flagging patterns that look like splitting, and in some categories, blocking the addition of more units to a direct purchase once the rolling total approaches the threshold. The system may require the buyer to convert a direct purchase into a bid when the cart total exceeds the relevant threshold.

GeM also uses category-level rules to define what constitutes the same item for splitting purposes. Two products in the same sub-category ordered together are assessed cumulatively. A buyer who orders similar products from different sub-categories, even if functionally equivalent, may avoid the restriction, which is a known limitation that GeM continues to refine.

The carting restriction is part of GeM's broader integrity architecture, which also includes anomalous order detection, IP-based identity checks to prevent sellers and buyers operating from the same location, and audit trails that flag unusual patterns for the buyer's internal vigilance or CVC review.

Why it matters for bidders

Sellers on GeM should understand carting restrictions because they explain why some buyers are reluctant to place multiple small orders from the same seller in quick succession. A buyer who has received complaints from internal vigilance about apparent splitting will prefer to consolidate their requirement into a single bid, which opens competition but gives honest sellers a fair chance.

For bidders, the implication is: be aware that buyers who need large quantities will increasingly be pushed by the platform toward bids rather than direct purchase, regardless of the individual order size. Sellers who want consistent volume from government buyers should invest in competitive bidding capabilities, registration, document readiness, bid submission process, not just catalog listing.

There is also a seller-side integrity dimension. Sellers who facilitate splitting, by agreeing to place inventory at artificially segmented quantities or by coordinating with a buyer to structure purchases to stay below thresholds, violate GeM terms and are subject to suspension.

Example

A government hospital needs to purchase 400 branded surgical gloves boxes monthly. At the market rate of Rs 450 per box, the annual requirement is Rs 21.6 lakh, well above the Rs 5 lakh bid threshold. A store officer attempts to place monthly direct purchases of Rs 1.8 lakh each, staying below the comparison threshold. GeM's system tracks the cumulative spend on the same product category and flags the pattern after the third month. The system prompts the buyer to initiate an annual rate contract bid. The officer is required to consolidate the requirement and float a bid, opening competition to all GeM sellers of surgical gloves. The resulting L1 selection saves the hospital Rs 45,000 annually through competition.

Key rules / thresholds

GFR 2017 Rule 146 prohibits procurement splitting as an explicit rule: "No procurement shall be split into smaller parts so as to avoid the requirement for inviting tenders." CVC has issued multiple guidelines confirming that splitting is a vigilance-sensitive matter. GeM's carting restriction is the technical implementation of this legal principle at the platform level.