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Timely Disposal of GeM/Non-GeM Bills - CGDA

Summary: Timely Disposal of GeM/Non-GeM Bills

Guidelines for Timely Disposal of GeM & Non-GeM Bills

Office of the Controller General of Defence Accounts (CGDA)

Reference: File No. GeM-701/1/2025-GeM | Date: 29/04/2026

Executive Overview

The Ministry of Defence has issued urgent reminders regarding the mandatory timelines for processing and paying bills generated through the Government e-Marketplace (GeM) and other channels. These measures align with the "Aatmanirbhar Bharat" initiative to ensure prompt payments to vendors, particularly MSMEs.

Mandatory Timelines & Penalties

  • Prescribed Timeline: All third-party and GeM bills must be processed within a mandated timeframe of 10 calendar days or 7 working days.
  • Penal Interest: If payment is delayed beyond 10 days after the generation of the Consignee Receipt and Acceptance Certificate (CRAC), the buyer organization is liable to pay a penal interest of 1% per month.
  • Interest Usage: This penal interest is not paid to the vendor but is deposited into a separate GeM account for educational and procurement purposes.
Critical Monitoring: The Cabinet Secretariat is closely monitoring the Administrative Scorecard of the Ministry of Defence regarding GeM payment parameters. Delayed payments are currently adversely affecting the Ministry's scorecard.

Operational Best Practices

  • FIFO Method: All bills must be cleared strictly on a "First In First Out" (FIFO) basis according to their receipt date.
  • Comprehensive Observations: All objections must be raised at the first instance to avoid returning bills multiple times. Returning a bill for a third time requires the personal approval of the JCDA/CDA.
  • No Frivolous Returns: Offices are prohibited from returning bills for documents or bank details (like cancelled cheques or mandate forms) that are already available and digitally signed on the GeM portal.
  • Daily Updates: UTR linking must be updated on a daily basis to ensure the timely closure of bill cycles.
  • Advances: Medical and TA/DA advances should be audited and passed on the same day or the following day.
⚠️ Disclaimer

Educational Purpose Only: The information provided in this article is for general informational and educational purposes only.

Accuracy & Mistakes: While every effort has been made to ensure accuracy, human errors or omissions may occur.

No Liability: Under no circumstances shall the author or this website be held liable for any loss arising from the use of this information.

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