GeM Self-Invoicing

GeM Self-Invoicing is the integrated invoice generation mechanism within the Government e-Marketplace (GeM) portal that allows sellers to raise invoices directly on the platform after the buyer's Verifying Authority confirms delivery, streamlining payment through PFMS without separate paper invoices.

What is GeM Self-Invoicing?

GeM Self-Invoicing replaces the traditional process of sellers submitting physical bills to accounts offices. The digital workflow is:

1. Seller delivers goods or provides services per the GeM Contract
2. Buyer's Verifying Authority inspects and accepts delivery on the GeM portal
3. Seller receives a notification that delivery has been accepted
4. Seller raises a GeM Self-Invoice on the portal, which auto-populates contract details, quantities, rates, and GST calculations
5. The invoice is submitted electronically and linked to the GeM Contract Number in PFMS
6. Buyer's Finance Officer verifies and authorises payment through PFMS
7. Payment is credited directly to the seller's registered bank account within 10 working days of invoice submission

GeM Self-Invoicing ensures:

• No manual invoice preparation errors
• Automatic GST compliance (IGST/CGST/SGST calculated correctly based on buyer and seller locations)
• TDS deduction calculated and reported automatically
• Seamless audit trail linking purchase order to invoice to payment
• Payment status trackable in real-time by the seller on the GeM portal

Sellers who do not raise invoices on time after delivery acceptance delay their own payment. GeM auto-reminders alert sellers to pending invoice generation.

Why GeM Self-Invoicing matters for Indian government suppliers

Self-Invoicing is the final step between delivery and payment, and it is entirely in the seller's control. Sellers who raise invoices promptly after each delivery acceptance minimise their payment cycle. A common mistake is waiting to batch multiple invoices at month-end rather than raising each one as deliveries are accepted. For sellers using GeM TReDS Integration for invoice discounting, raising the GeM invoice immediately after acceptance is the prerequisite for accessing discounting.

Example

A furniture supplier delivers a batch of 20 office chairs and receives a delivery acceptance notification from the buyer's Verifying Authority on Tuesday afternoon. The seller logs into the GeM portal, navigates to Contract GEMC-3118441022, and raises a GeM Self-Invoice for INR 1.86 lakh including GST at 18%. PFMS processes the invoice, the Finance Officer approves on Thursday, and the payment is credited on the following Monday, a 6-day payment cycle from invoice to receipt.

Frequently Asked Questions

Can a seller raise a GeM Self-Invoice before delivery acceptance?

No. The GeM platform links invoice generation to delivery acceptance. Until the Verifying Authority marks delivery as accepted, the invoice option is not available to the seller. This ensures invoices are raised only for genuinely delivered goods.

What if the buyer's Verifying Authority is not marking delivery as accepted even though goods were delivered?

Sellers can contact the buyer organisation's procurement officer to follow up on pending delivery acceptance. If the VA is consistently unresponsive, the seller can raise a dispute through the GeM Seller Support Portal, which escalates to the buyer's senior officer for resolution.

Is GST invoice generated by GeM Self-Invoicing valid for GST purposes?

Yes. A GeM Self-Invoice generated through the portal is a valid GST tax invoice. The invoice is also automatically reflected in the seller's GSTN records, simplifying GST return filing. The buyer can avail Input Tax Credit (ITC) based on the GeM-generated invoice.

Can a seller use their own invoice format for GeM procurement?

For GeM transactions, the self-invoicing mechanism on the portal is the standard process. Sellers are not required to generate a separate company invoice; the GeM system generates a compliant invoice. However, sellers may issue a supplementary commercial invoice in their own format for their internal accounting records.