Selling on GeM (Government e-Marketplace) is a great opportunity — but what happens when an order goes wrong?
Maybe a buyer cancels at the last minute. Maybe the product reaches them damaged. Maybe you as a seller made a listing mistake. These situations happen, and if you don’t handle them the right way, your seller rating takes the hit.
This guide by BizWithTech explains everything in simple steps — so you know exactly what to do.
What Is Order Cancellation on GeM?
When a confirmed order is stopped before delivery, it is called a cancellation.
Both the buyer (government department) and the seller can cancel — but the rules are different for each.
Quick Example:
A government office orders 10 office chairs from you. Before you ship, they cancel due to budget issues. That is a buyer-side cancellation.
Who Can Cancel and When?
| Who | When They Can Cancel | Impact on Seller Rating |
|---|---|---|
| Buyer | Before the order is dispatched | No negative impact on seller |
| Seller | Before dispatch, with valid reason | Negative impact if no valid reason |
| Either party | After dispatch — NOT allowed directly | Must go through dispute/return process |
Cancellation by the Buyer
A buyer can cancel before the seller ships the goods. This usually happens because of:
- Budget reallocation in the department
- Change in product requirement
- Administrative or approval issues
What should the seller do?
- Do not panic — this will not affect your rating
- Update your inventory immediately
- Keep the cancellation confirmation number for your records
Example:
A central government office cancels a stationery order worth ₹45,000 before dispatch. The seller is not penalised. The amount is not deducted from the seller’s account.
Cancellation by the Seller
This is more serious. GeM treats seller cancellations strictly.
Valid reasons a seller can cancel:
- Product went out of stock due to an unexpected reason
- A pricing error was made during listing
- Serious mismatch found in order specifications
What happens if you cancel without a valid reason?
- Your seller performance score goes down
- Your account may be temporarily suspended
- You may lose visibility in future GeM searches
How to cancel as a seller — step by step:
- Log in to your GeM Seller Dashboard
- Go to Orders section
- Select the order you want to cancel
- Click Cancel Order (only available within the permitted window)
- Choose a reason from the dropdown
- Upload supporting documents if required
- Submit — the buyer will be notified
- Save the cancellation confirmation number
What Is a Return Request on GeM?
A return is raised by the buyer after delivery when something is wrong with the product.
Common reasons buyers raise returns:
- Product received is damaged
- Wrong product delivered
- Quality does not match the listing description
- Quantity is short
Example:
A government school orders 50 chairs. On delivery, 8 chairs have broken armrests. The buyer raises a return request with photos as proof.
How to Raise a Return Request — Step by Step (For Buyers)
- Log in to the GeM Buyer account
- Go to the delivered order
- Click Raise Return / Replacement Request
- Select the reason — damaged, wrong product, quality issue, etc.
- Upload clear photos as evidence
- Submit the request
The seller receives a notification and must respond within the given window.
What Happens After a Return Is Raised?
| Step | Action | Who Does It |
|---|---|---|
| Step 1 | Return request raised with photos | Buyer |
| Step 2 | Seller accepts or disputes the return | Seller |
| Step 3 | If accepted — reverse pickup arranged | Logistics / GeM |
| Step 4 | Goods inspected after return | Seller |
| Step 5 | Refund or replacement processed | GeM / Seller |
| Step 6 | If disputed — GeM Dispute Cell reviews | GeM Team |
Cancellation vs Return — What Is the Difference?
| Point | Cancellation | Return |
|---|---|---|
| When | Before delivery | After delivery |
| Who raises it | Buyer or Seller | Buyer only |
| Reason | Stock issue, budget change, error | Defect, damage, wrong item |
| Refund timeline | 7–10 working days | After return pickup is confirmed |
| Proof needed | Reason + optional documents | Photos of damage/defect mandatory |
Important Timelines You Must Know
Missing a deadline on GeM means the system decides for you — and usually not in your favour.
- Return response window for seller: 48 to 72 hours after buyer raises a return
- Buyer acknowledgement for cancellation: Within 24 hours recommended
- Refund processing: 7 to 10 working days after confirmation
- Return window for buyer: Usually within 10 days of delivery confirmation
Tip from BizWithTech: Set a daily reminder to check your GeM order dashboard. One missed notification can cost you a dispute.
Tips to Avoid Cancellations and Returns
Before listing a product:
- Write accurate descriptions — size, colour, material, brand, model number
- Upload real photos of the actual product
- Do not copy-paste specs from another website without verifying
Before accepting an order:
- Check your stock count first
- Confirm you can deliver within the stated timeline
- Re-read the order details carefully
Before dispatch:
- Do a quality check on every unit
- Pack securely — use bubble wrap, strong boxes, proper labelling
- Use trackable courier services only
Example:
A seller listed a printer as “compatible with all ink cartridges.” The buyer received it and found it only works with one specific brand. A return was raised. The seller lost the order, paid return shipping, and got a lower rating — all because of one inaccurate line in the listing.
Frequently Asked Questions
Q1. Can I cancel after I have already dispatched the order?
No. Once you mark an order as dispatched on GeM, you cannot cancel it. If the buyer wants to return it, they must raise a return request after delivery. If there is a dispute, use the GeM grievance section.
Q2. How many days does the buyer have to raise a return?
In most product categories, the buyer has 10 days from the delivery confirmation date to raise a return. For some electronics or specialised items, this window may be shorter. Always check your product category’s return policy on GeM.
Q3. Will a buyer’s cancellation affect my seller rating?
No — if the buyer cancelled without any fault on your side, your rating is not affected. But if the buyer cancelled because you were late in dispatching or gave wrong information, it will be recorded against you.
Q4. What if the buyer does not reply to my return dispute?
If the buyer does not respond within the required window, GeM automatically escalates the case to the Dispute Resolution Cell. They will review both sides and give a final decision. Make sure you have uploaded all your evidence before this happens.
Q5. How many cancellations are too many on GeM?
GeM does not publish a fixed number, but a pattern of seller-initiated cancellations will definitely lower your performance score. Even two or three unjustified cancellations in a short period can reduce your search ranking and invite a warning from GeM. Treat every order as final once you accept it.
Discover more from
Subscribe to get the latest posts sent to your email.
