Direct Purchase (up to ₹25,000) & L1 Comparison (up to ₹5 Lakhs) Rules under GFR 149 on GeM

Leveraging Direct Purchase and L1 Comparison Rules under GFR 149 on GeM

Many business owners assume that selling on GeM requires participating in grueling, weeks-long tender bidding. In reality, a massive volume of government procurement transactions occurs swiftly without any public bidding through two streamlined mechanisms governed by Rule 149 of the General Financial Rules (GFR) 2017: Direct Purchase and L1 Comparison.

Understanding these thresholds allows Pune manufacturers and distributors to optimize their catalog pricing and capture immediate purchase orders directly from government procurement officers. At KOKJAGUAR Consultancy, we help sellers configure pricing strategies and golden specifications to capture high-velocity direct orders. Explore our GeM sales acceleration services.

Statutory Procurement Thresholds under GFR 149

• Direct Purchase (Up to ₹25,000): Government buyers can purchase directly from any available seller on GeM meeting quality and delivery requirements without comparing prices.
• L1 Comparison (₹25,001 to ₹5,00,000): The buyer compares at least 3 distinct manufacturers/sellers on the portal meeting identical specifications and must award the order to the lowest price (L1).
• Custom Bidding / Reverse Auction (Above ₹5,00,000): Mandatory electronic open tender bidding or reverse auction.