GeM Direct Purchase Limit 2026: ₹50,000 Rule, L1 Up to ₹10 Lakh
By GeMSignal · Updated · 5 min read
The limits that decide whether a government buyer can order from you directly, compare three sellers, or run a full bid were doubled in July 2024. Many pages still show the old ₹25,000 / ₹5 lakh numbers. Here are the current ones.
Current GeM purchase limits
Rule 149 of the General Financial Rules, 2017, as amended by the Department of Expenditure's Office Memorandum of 10 July 2024:
- Direct purchase: up to ₹50,000 — from any seller meeting the required quality, specification and delivery period.
- L1 purchase: above ₹50,000 and up to ₹10 lakh — from the lowest-priced seller after comparing at least three manufacturers.
- Bid / reverse auction: above ₹10 lakh — mandatory competitive bidding, optionally followed by a reverse auction.
Old vs new limits
Before July 2024, the limits were ₹25,000 for direct purchase and ₹5 lakh as the L1 ceiling. If a page or training deck quotes those, it is out of date.
Exceptions
- Buyers can't split one requirement into smaller orders to stay under a limit.
- Some scientific and technical departments have higher limits under a separate order.
- Automobiles follow their own rules.
What sellers should do with this
Under ₹50,000, the buyer is picking straight from the catalogue, so your listing — price, specs, photos, delivery time — is your sales pitch. Between ₹50,000 and ₹10 lakh you compete on price against at least two others. Above ₹10 lakh, the winner is often the seller who saw the bid first and had documents ready, which is where tender alerts help.
Note: GeMSignal is a private service and is not affiliated with the Government e-Marketplace. Rules, thresholds and fees change — always verify on the official portal at gem.gov.in.