GFR 2017 & GeM Procurement 2026: Rules 144–206, Purchase Limits, Examples and UPSC MCQs
The General Financial Rules (GFR), 2017 govern the financial management and public procurement of Central Government departments. GeM buying is governed particularly by Rule 149; open, limited and single tender routes, purchase committees, bid security and contract management require separate checks. For UPSC Recruitment Tests, memorise the rule number, correct authority, procurement route and current threshold together.
Original practice; authoritative links are provided below. Verify notification-specific rules before taking official action.
Essential rules: what to study
| Provision | Meaning for an exam | Decision point |
|---|---|---|
| Rule 21 | Standards of financial propriety | Exercise the same vigilance as with personal money; avoid expenditure benefiting a particular person without proper basis. |
| Rule 144 | Fundamental procurement principles | Efficiency, economy, transparency, fair competition and reasonable pricing. |
| Rule 149 | Government e-Marketplace (GeM) | Items available on GeM are generally to be procured via GeM; method depends on value. |
| Rules 154–155 | Non-GeM low-value purchases | Certificate-based purchase versus Local Purchase Committee (LPC). |
| Rule 161 | Advertised tender enquiry | Open competitive process; review applicability and exceptional restrictions. |
| Rule 162 | Limited tender enquiry | Invitations to a restricted set of suppliers under the rule. |
| Rule 166 | Single tender enquiry | Permitted only on specified grounds and with recorded justification. |
| Rules 170–171 | Bid/performance security | Distinguish offer-stage safeguards from performance-stage safeguards. |
Exam method: learn the financial principle before memorising a monetary figure. Procurement values and exceptions can be amended by Department of Expenditure orders.
GeM Rule 149: value-based routes
| Purchase value | Rule 149 route | What to check |
|---|---|---|
| Up to ₹50,000 | Purchase through any available GeM supplier meeting specifications, quality and delivery requirements. | Competent approval, genuine requirement, rate reasonableness. |
| Above ₹50,000 and up to ₹10 lakh | Lowest-priced eligible seller among at least three different manufacturers/sellers, as governed by the revised rule and GeM process. | Comparison and specification compliance; do not confuse this with an off-GeM LPC. |
| Above ₹10 lakh | Online bidding or reverse auction through GeM as prescribed. | Proper tender evaluation, transparent award and competent sanction. |
The ₹50,000/₹10 lakh amounts follow the July 2024 revision of Rule 149. Check subsequent instructions and the latest consolidated GFR before operational use.
Case: A common-use item of ₹7.8 lakh is available on GeM. The purchasing officer cannot simply substitute an off-platform three-person committee; the appropriate GeM procedure must be examined first.
GeM vs purchase without quotation vs LPC
GeM is a platform, not a synonym for every government tender. Rule 149 governs goods/services available on the platform. Rule 154 allows purchase of goods without quotation up to ₹50,000 on each occasion, subject to the requisite certificate and nonavailability/other applicable conditions. Rule 155 permits an LPC for goods above ₹50,000 and up to ₹5 lakh where eligible goods are unavailable on GeM. A 2024 special relaxation for specified scientific institutions, including DRDO, has different thresholds, so do not apply the exception to every ministry.
| Scenario | First rule to examine | Common trap |
|---|---|---|
| Common office item listed on GeM | 149 | Using LPC automatically |
| ₹35,000 item not on GeM | 154 | Thinking quotations compulsory in every case |
| ₹3 lakh item not on GeM | 155 | One-person purchase instead of three-member LPC |
| Unique proprietary spare | 166 and applicable proprietary certification | Claiming urgency alone always justifies nomination |
How a procurement file moves
- Need identification: quantity, objective specification, budget provision and approving authority.
- Market check: whether the goods/services are offered on GeM; avoid tailor-made specifications that restrict competition.
- Route selection: choose the appropriate GeM mode or documented off-GeM procedure.
- Bid/quotation examination: eligibility, technical compliance, responsiveness and financial comparison.
- Sanction and order: record the decision, obtain competent approval and issue purchase order/contract.
- Receipt and payment: inspection, acceptance, inventory entry, invoice checks and audit trail.
Distinguish: bid security protects procurement against an unsuitable withdrawal; performance security addresses fulfilment of contract obligations. Neither is simply a refundable advance payment for goods.
UPSC exam revision: ten concepts
- Rule 21 – financial propriety.
- Rule 144 – fundamental principles in public buying.
- Rule 149 – GeM purchasing.
- Rules 154/155 – without quotation / LPC.
- Rule 161 – advertised tender.
- Rule 162 – limited tender.
- Rule 166 – single tender.
- Rule 170 – bid security.
- Rule 171 – performance security.
- Rule 175 onwards – contract management and related safeguards; verify precise rule before relying on a numbered question.
For additional practice, use CrackTarget’s 150-question GFR and service-rules bank and the dedicated procurement notes.
Original UPSC-style practice: questions with solutions
These are original concept checks, not labelled as actual past-year questions.
Q1. Which rule principally governs GeM purchase of common-use goods and services?
Answer: Rule 149.
GeM is addressed in GFR Rule 149.
Q2. What is the revised upper value for GeM direct purchase through any available eligible supplier?
Answer: ₹50,000.
The July 2024 amendment increased this threshold to ₹50,000.
Q3. What primarily governs non-GeM purchase of goods without quotation?
Answer: Rule 154.
Rule 154 deals with purchase without quotation, subject to conditions.
Q4. A three-member LPC route for eligible off-GeM goods is linked with which rule?
Answer: Rule 155.
Rule 155 governs purchases on Local Purchase Committee recommendation.
Q5. Which rule states general procurement principles?
Answer: Rule 144.
Rule 144 includes fairness, transparency, economy and efficiency.
Q6. Which rule is generally associated with advertised tender enquiry?
Answer: Rule 161.
Rule 161 covers advertised tender enquiry.
Q7. Which rule is associated with single tender enquiry?
Answer: Rule 166.
Only specific grounds permit a single tender.
Q8. The purpose of performance security is chiefly to safeguard what?
Answer: Contract performance.
It guards against supplier non-performance after contract award.
Frequently asked questions
Are GeM and GFR the same thing?
No. GFR is the financial rules framework. GeM is the government online procurement marketplace used under Rule 149 and associated instructions.
Can a buyer use an LPC even though the item is available on GeM?
Not as an automatic substitute. Examine mandatory GeM procurement requirements, permitted exceptions and recorded approvals.
What GeM limits should I learn for 2026 exams?
Start with the revised ₹50,000 and ₹10 lakh thresholds under Rule 149; always verify the latest consolidated GFR and applicable orders.
Are these UPSC previous-year questions?
No. Questions on this page are original practice questions. Refer to UPSC’s archive for authentic past papers.
Where can I find more GFR MCQs?
Use CrackTarget’s dedicated 150-question GFR/CCS/office-procedure practice bank, linked above.
Further reading on CrackTarget
Explore the structured study plan, solved papers and specialised notes. Join the DRDO SAO community for new lessons.
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