What it means
When a bid has reverse auction enabled, the sellers who qualify technically are invited to an online auction after the bid closes, where they lower their prices in real time. The lowest price (L1) at the end usually wins.
How to prepare
- ✓Know your lowest workable price before the RA starts
- ✓Watch the RA start time on GeM — it is a short window
- ✓Remember ePBG and delivery terms when you decide how low to go
When the RA happens
The RA takes place after technical evaluation is complete, not at the moment the bid closes. GeM informs the qualified sellers of the RA schedule, and the auction runs between a start and end time set on the portal. Read the RA terms in the bid for how the closing works and whether all qualified sellers are invited — some bids keep the highest-priced sellers out of the RA. Keep GeM notifications on and check the email registered on your seller account so you do not miss the invite.
How bidding in the RA works
During the RA you can only lower your price, never raise it. The RA screen shows where your offer stands while the auction is running, and the RA settings may fix the minimum step by which a new price must be lower. Your price must still cover the full scope and quantity of the bid — the RA changes the price, not what you have to supply.
Working out your floor price
- ✓Cost of the goods or the service delivery, including taxes as the bid's price terms require
- ✓Freight to every consignee location, and installation if the bid asks for it
- ✓ePBG bank charges and the credit limit the guarantee blocks
- ✓Warranty and after-sales service cost over the contract period
- ✓Payment terms: how long your money stays out after delivery
- ✓The margin you will not go below, written down before the RA starts
Common RA mistakes
- ✓Going below your floor price in the last minutes because of the pressure of a live auction
- ✓Missing the RA because the invite went to an email nobody checks
- ✓Quoting a careless bid-stage price on the assumption that the RA will fix it later
- ✓Forgetting that winning at a loss still means delivering the whole contract and keeping the ePBG
After the RA
When the RA closes, the seller with the lowest price becomes L1, subject to the buyer's final evaluation and any purchase preference the bid applies, such as for MSEs. Where the bid includes an MSE purchase preference clause, an MSE that is not L1 may get a chance to match the L1 price for part of the quantity, as the bid states. The buyer then places the contract and the bid's ePBG and delivery terms follow.
Mitra's /tenders/reverse-auction page lists live bids with RA enabled, so you can plan your pricing from the day the bid is published.
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Frequently asked questions
Who can take part in a GeM reverse auction?
Only sellers who qualified in the technical evaluation of that bid are invited to the RA.
How do I know if a bid will go to reverse auction?
The bid document states whether RA is enabled. If it is, treat your initial price as an opening position and decide your minimum price before the RA starts.
What happens if I do not take part in the RA?
Your price from the bid stage remains your offer, but others can go below it during the RA. Read the bid's RA terms for details.
Can I increase my price during the RA?
No. In a reverse auction prices can only go down. Fix your floor price before the RA starts and do not go below it.
Does the RA price include GST and freight?
Your RA price is on the same basis as your bid-stage price. Read the bid's price terms and ATC to see what the price must include, such as taxes, freight and installation, so that your final RA price covers the full scope.
Related guides
Rules change. Always confirm the details in the bid document and on gem.gov.in before you bid. · Updated 2026-11-02
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