Payment on GeM is released only after the buyer department generates a Consignee Receipt and Acceptance Certificate, commonly called CRAC, confirming that the delivered goods or services have been received and accepted in good condition. Once CRAC is generated, the seller submits their bill against the purchase order through the portal, and payment is processed through the government’s integrated financial system within a defined timeline, typically counted from the date of acceptance rather than the date of delivery. Many sellers face payment delays not because of any fault in their product, but because they misunderstand this sequence and either submit bills too early or fail to follow up when CRAC generation is delayed on the buyer’s end. This post breaks down each stage of the process so you know exactly what to track and when.
Understanding the Payment Flow on GeM
The GeM payment cycle is built around three core stages, delivery and acceptance, bill submission, and fund release through the government’s payment system. Unlike private sector transactions where invoicing often happens immediately at the point of delivery, GeM ties your ability to raise a bill to a formal acceptance step by the consignee. This is a critical distinction, and sellers who are used to standard commercial billing practices sometimes get caught off guard by it.
If you are new to the portal and still setting up your seller profile, getting your GeM registration done correctly from the start, including accurate bank account details and GST information, prevents a large share of payment issues later, since even a small mismatch in these details can hold up fund release even after CRAC is generated.
What Is CRAC and Why It Matters
CRAC stands for Consignee Receipt and Acceptance Certificate. It is generated by the consignee, meaning the government official or department that physically receives the goods or service, once they confirm the delivered item matches the order specifications and is in acceptable condition.
This step exists to protect the buyer against paying for goods that were never delivered or that do not meet the required standard. For sellers, the practical impact is that your payment clock generally does not start until this certificate is issued, not from the date you shipped the product or the date it physically reached the consignee’s location.
Delays at this stage are one of the most common reasons sellers experience slow payments, and in most cases the delay has nothing to do with the seller’s performance. It happens because the consignee official is occupied with other duties, is unaware of the urgency, or the internal verification process at their end is simply slow.
Bill Submission on GeM
Once CRAC is generated, the seller needs to submit the bill or invoice against the specific purchase order through the portal. A few practical points matter here that are often overlooked.
1. Invoice details must match the purchase order exactly Quantity, item description, unit price, and GST details on your invoice need to align precisely with what is recorded on the purchase order. Even small mismatches can cause the bill to be rejected or sent back for correction, adding days or weeks to the timeline.
2. GSTIN and e-way bill compliance For goods that require e-way bills under GST rules, this documentation needs to be in order and consistent with your invoice before submission, since discrepancies here are a frequent source of query and delay.
3. Bank account details on your GeM profile must be current Payments are released to the bank account linked to your seller profile. If this account has changed, or if the account details were entered incorrectly during registration, the payment can bounce back or get stuck in a corrected disbursement cycle.
4. Submit promptly after CRAC generation Waiting too long to submit your bill after CRAC is issued only delays your own payment further, since the clock for processing generally starts once your bill is formally received on the system.
Payment Timelines You Should Track
GeM operates under a payment framework that requires buyer organizations to process payment within a set number of days after acceptance, generally understood to be around ten days from CRAC generation for most standard orders, though this can vary based on the buyer department and the nature of the contract. If payment extends beyond the committed window, sellers are often entitled to raise the delay formally through the portal’s grievance mechanism, and in many cases interest liability applies on the buyer’s side for unjustified delays.
It helps to track three dates for every order, the date of delivery, the date CRAC is generated, and the date your bill is submitted, since most disputes about delayed payment come down to confusion about which of these dates actually applies.
Common Reasons Payments Get Delayed
- CRAC generation is pending at the consignee’s end, often due to internal administrative delays rather than any product issue
- Invoice details do not match the purchase order line items
- Bank account details on the seller profile are outdated or incorrect
- The paying authority, which handles fund disbursement, is a different office from the consignee, and communication between the two departments is slow
- Disputes over partial delivery or quantity discrepancies that have not been formally resolved
- E-way bill or other statutory documents are missing or inconsistent with the invoice
Understanding these categories helps you know exactly where to follow up instead of generically chasing “payment status” without knowing which stage is actually stuck.
What Sellers Can Do to Avoid Payment Delays
Keep your product listings, quality standards, and delivery timelines tightly aligned with your purchase order terms, since disputes at delivery are the single biggest trigger for a stuck payment cycle later. If you are also managing order-related compliance obligations, understanding how SLA and penalty terms work on GeM orders helps you avoid disputes that indirectly stall your payment timeline as well.
It also helps to maintain your financial instruments correctly on the portal. If your orders involve an EMD, keeping your EMD submissions accurate and on time avoids unnecessary friction at the order stage that can later spill over into payment processing delays. Similarly, for higher value contracts requiring a performance guarantee, understanding how ePBG works on GeM ensures this requirement does not become a blocker when your payment is otherwise due.
Payment Process Checklist for Sellers
- Confirm delivery has been physically received by the consignee
- Follow up proactively if CRAC has not been generated within a reasonable time after delivery
- Verify invoice details match the purchase order exactly before submission
- Confirm e-way bill and GST documentation are complete and consistent
- Check that bank account details on your GeM profile are current and correct
- Submit your bill promptly once CRAC is generated
- Track delivery date, CRAC date, and bill submission date for every order
- Escalate through the portal’s grievance mechanism if payment extends well beyond the standard timeline
Conclusion
Payment delays on GeM are rarely about your product quality. They usually come down to where the order actually sits in the CRAC and bill submission cycle, and whether your own documentation and bank details are fully accurate. Sellers who track these stages actively, rather than assuming payment will simply arrive automatically after delivery, are far better positioned to catch delays early and follow up at the right point rather than chasing a vague status update. If you are setting up on the portal for the first time or want expert help navigating registration and compliance correctly, working with an experienced GeM portal consultant in Delhi NCR can help you avoid the documentation errors that most commonly disrupt payment timelines.
Frequently Asked Questions
1. What is the difference between delivery date and CRAC date for payment purposes? Delivery date is when the goods physically reach the consignee, while CRAC date is when the consignee formally confirms acceptance. Payment timelines are generally counted from the CRAC date, not the delivery date.
2. Who is responsible for generating CRAC, the buyer or the seller? CRAC is generated by the consignee, which is the buyer side official responsible for receiving and verifying the delivered goods or service.
3. Can I submit my bill before CRAC is generated? No, bill submission is typically tied to CRAC generation, since the certificate confirms that the order has been accepted and payment can now be processed against it.
4. What should I do if CRAC generation is delayed for a long time? Follow up directly with the consignee department, and if the delay continues without resolution, raise the issue formally through the portal’s grievance or support mechanism.
5. Why did my payment not arrive even after CRAC was generated? This usually points to either an issue with your submitted invoice not matching the purchase order, incorrect bank account details on your profile, or a delay at the paying authority’s end, which can be a separate office from the consignee.
6. Is there a penalty if the buyer delays payment beyond the standard timeline? In many cases, unjustified payment delays beyond the committed window can attract interest liability on the buyer’s side, though sellers need to formally raise the delay through the appropriate channel to invoke this.
7. Does incorrect GST or e-way bill documentation affect payment timelines? Yes, any mismatch or missing statutory documentation tied to your invoice is a common reason bills get sent back for correction, which directly extends your payment timeline.
