Business registration & legal
GeM Registration in 2026: How to Register as a Seller, What It Costs and How MSEs Win Government Orders
GeM registration in 2026: free seller sign-up, documents, the end of caution money, vendor assessment, transaction charges, MSE tender benefits and bidding basics.

Contents (10)
- 1. What GeM is and why registration matters
- 2. Who can register as a seller
- 3. Documents for GeM registration
- 4. How to register on the GeM portal, step by step
- 5. What GeM costs in 2026: fees, charges and what's gone
- 6. MSE benefits on GeM: the Public Procurement Policy
- 7. How buyers order on GeM — and how to bid
- 8. Common mistakes to avoid
- 9. Official links
- 10. What to do next
Central ministries, departments and many public sector units are required to buy common goods and services through the Government e-Marketplace (GeM). If you make or supply anything from office chairs and toner to security services and lab equipment, a GeM seller account is how you reach those buyers. This guide walks Indian MSMEs through GeM registration in 2026: who can register, the documents, the step-by-step process, what it really costs now that caution money has gone, the benefits for micro and small enterprises, and how buyers actually place orders.
Quick answer
GeM registration is free and done online at gem.gov.in → Sign up → Seller. You verify identity with Aadhaar or your personal PAN, then add business PAN, bank details, address and (for bids) recent ITRs. Caution money was discontinued in 2025, so there is no deposit. Charges start only when you sell: a ₹10,000 + GST Annual Milestone Charge after ₹20 lakh of sales in a year, and 0.30% on orders above ₹10 lakh.
Registration fee: Free — beware of agents charging for 'GeM registration certificates'
OEMs selling products may need a paid vendor assessment by the assessment agency (RITES)
Udyam-registered MSEs are exempt from EMD and can win up to 25% of a tender by matching L1 within L1 + 15%
Buyers can purchase directly up to ₹50,000, by L1 comparison up to ₹10 lakh, and by bid or reverse auction above that
What GeM is and why registration matters
GeM is the national online marketplace for government buying, run by GeM SPV under the Ministry of Commerce and Industry. Buyers — central ministries, departments, public sector units, and many state bodies — browse catalogues, place direct orders, or float bids and reverse auctions. Payment is processed online, and buyers are expected to pay within timelines set in GeM's terms.
What makes it important for a small business is Rule 149 of the General Financial Rules (GFR) 2017: central ministries and departments must buy goods and services through GeM whenever those items are available there. In practice, if your product category exists on GeM, a central buyer can't simply ask for your quotation by email.
Who can register as a seller
Proprietorships, partnerships, LLPs, companies, trusts, societies, co-operatives and government entities can all register. The constitution type decides which PAN you use: a proprietor uses their personal PAN; every other type uses the organisation's PAN.
You can register as:
- OEM (manufacturer or brand owner) — lists its own brand and can authorise resellers.
- Reseller — sells another brand's products after the OEM authorises it on GeM's OEM panel.
- Service provider — security, manpower, cleaning, vehicle hire, IT support, catering and many other service categories.
DPIIT-recognised start-ups have their own route (the Startup Runway store for innovative products), and you can also opt to link your Udyam registration with GeM from the Udyam portal.
Documents for GeM registration
Keep these ready before you start
0/10Aadhaar is no longer mandatory: GeM lets you verify your identity with your personal PAN instead. Whatever you enter is validated online against the issuing databases, so names, dates and addresses must match exactly — a mismatch between your PAN name and bank account name is one of the commonest reasons registration stalls.
How to register on the GeM portal, step by step
GeM seller registration
- 1
Start the sign-up
GeM seller sign-upGo to gem.gov.in, click Sign up and choose Seller. Read and accept the terms.
- 2
Verify the primary user
Enter Aadhaar (OTP on the linked mobile) or your personal PAN with a mobile number, then verify your email. This person becomes the primary user who controls the account.
Tip: Use a long-term owner or director as primary user — not an employee or consultant who may leave.
- 3
Enter and validate business details
Select your constitution type, enter business PAN, name and date of incorporation, and let GeM validate them online. Companies add CIN.
- 4
Complete the seller profile
Add registered and other office addresses, bank account (validated online), ITR details (needed for bidding if the business is over two years old), Udyam number and GSTIN.
- 5
Add secondary users if needed
From My Team, create secondary users and give each a role — bid participation, order fulfilment, catalogue management.
- 6
Get ready to sell
OEMs complete brand approval and, where required, vendor assessment, then list catalogues. Resellers get the OEM's authorisation code and add it in the Reseller Panel. Service providers select service categories and fill the parameters.
There is no "GeM registration certificate" to download in the way a GST or Udyam certificate exists — your registered, active seller profile is the proof. Be wary of agents selling "GeM certificates".

What GeM costs in 2026: fees, charges and what's gone
| Item | Who pays | Amount / status |
|---|---|---|
| Seller registration | Everyone | Free |
| Caution money | — | Discontinued in 2025; old deposits can be withdrawn |
| Vendor assessment | Product OEMs (unless exempt) | Fee paid online to the assessment agency; shown in your dashboard |
| Annual Milestone Charge | Sellers whose sales reach ₹20 lakh in a financial year | ₹10,000 + GST, once a year |
| Transaction charge, order up to ₹10 lakh | — | Nil |
| Transaction charge, order above ₹10 lakh up to ₹10 crore | Sellers past the ₹20 lakh threshold | 0.30% of order value |
| Transaction charge, order above ₹10 crore | Same | Flat ₹3 lakh |
These charges come from GeM's revenue policy in force for bids opened and orders placed on or after 9 August 2024. The AMC and transaction charges are payable online, and TDS at 2% applies once the year's combined charges exceed ₹30,000.
Vendor assessment is a check of an OEM's manufacturing set-up, carried out by an assessment agency — currently RITES Limited. Some OEMs qualify for Vendor Assessment Exemption (VAE), for example on the basis of a valid BIS licence for the category; a VAE lasts up to three years or until the supporting document expires, whichever is earlier. Because the fee and exemption categories are shown inside the portal and have changed over time, confirm the current fee on your dashboard before applying, and don't pay a third party for it.
Worked example. A Udyam-registered furniture maker in Ludhiana wins four orders in a year, in this order: ₹8 lakh, ₹6 lakh, ₹9 lakh and then ₹15 lakh — ₹38 lakh in total. Its sales cross ₹20 lakh with the third order, so it pays the Annual Milestone Charge of ₹10,000 + 18% GST = ₹11,800 once. The first three orders are each below ₹10 lakh, so no transaction charge. The ₹15 lakh order comes after the threshold, so it pays 0.30% = ₹4,500 + GST = ₹5,310. Total GeM charges for the year: ₹17,110, under 0.5% of sales.

MSE benefits on GeM: the Public Procurement Policy
The Public Procurement Policy for Micro and Small Enterprises Order, 2012 (mandatory since 1 April 2015) applies to central ministries, departments and central public sector enterprises, and GeM applies it in bids. Benefits go to MSEs registered on Udyam:
- Annual target. At least 25% of each buyer's annual procurement must come from MSEs, including 4% from SC/ST-owned and 3% from women-owned MSEs.
- Purchase preference. If an MSE quotes within L1 + 15% and the L1 bidder is not an MSE, the MSE can supply up to 25% of the tender by matching the L1 price. Where the item can't be split, the full quantity may go to the MSE. If L1 is itself an MSE, GeM's FAQ says 100% of the bid quantity goes to that L1 MSE.
- No EMD and free tender documents for registered MSEs.
- 358 items reserved for exclusive purchase from MSEs.
Three limits people miss:
- Traders and distributors don't get the preferences — the policy covers goods produced and services rendered by MSEs, not trading or works contracts.
- No exemption from performance security. You still furnish a performance bank guarantee (ePBG on GeM) if the bid asks for one.
- Your Udyam details must match your GeM profile. If your Udyam certificate changes, raise a ticket on GeM with the old and new certificates to update it.
How buyers order on GeM — and how to bid
How a buyer purchases depends on the order value, under GFR Rule 149 as amended on 10 July 2024:
How a central buyer picks the purchase route
Step 1
Direct purchase
up to ₹50,000 — any seller meeting the spec
Step 2
L1 purchase
above ₹50,000 up to ₹10 lakh — lowest of at least 3 manufacturers' offers
Step 3
Bid or reverse auction
above ₹10 lakh
That means two things for a small seller. For small orders, your catalogue price and listing quality decide whether you are picked — keep stock, prices and delivery periods current. For larger orders, you need to watch and respond to bids.
Bidding basics
- Find bids. Use the bid list on GeM (bidplus) filtered by your categories; set alerts for your products.
- Read the bid document fully. Check eligibility (turnover, experience, OEM authorisation, certifications such as ISO 9001), MII (Make in India) local-content requirements, and the delivery period.
- EMD. Upload exemption proof (Udyam for MSEs, DPIIT for eligible start-ups) or pay EMD as specified. Unsuccessful bidders' EMD is returned within 15 days of contract award or bid-validity expiry, whichever is earlier.
- Technical and financial bids. Upload documents exactly as asked; missing documents are the main cause of technical rejection. Declare MSE status and MII content correctly — false declarations attract penalties.
- Reverse auction. Many bids move to an RA after technical evaluation; plan your floor price before it starts.
- Representation window. You can file a representation against a bid's terms during the allowed window, including for short-duration bids of 3–10 days.
- After award. Accept the contract, submit ePBG if required, deliver, and raise the invoice on GeM. Track payment — if a buyer delays beyond 45 days, the MSME delayed payment rules may help.
Common mistakes to avoid
| Mistake | What to do instead |
|---|---|
| Paying an agent for "registration" or a "GeM certificate" | Registration is free; never share OTPs or make an outsider the primary user |
| PAN, bank, Udyam and GST names don't match | Fix the source records first — validation is automatic and strict |
| Skipping ITR details | Add them; you can't bid without them if the business is over two years old |
| Reseller listing without OEM authorisation | Get the OEM's authorisation code; unauthorised listings are removed |
| Missing order acceptance or delivery dates | Late or rejected supplies hurt your rating and can lead to suspension |
| Assuming a trading firm gets MSE preference | It doesn't — preferences are for MSE manufacturers and service providers |
Official links
Official GeM and procurement links
What to do next
If you are an MSE, get or update your Udyam registration first so your GeM profile picks up EMD exemption and purchase preference. Then register, list a few products or services with sharp pricing, and start tracking bids in your categories. Many bids ask for quality certification — see our ISO certification guide — and you'll need clean invoices: our free invoice generator can help.
This is general information, not legal or tax advice — confirm on the official source or with a professional.
Frequently asked questions
Registering as a seller on the Government e-Marketplace is Free — GeM's own FAQ says there is no charge. Costs come later: product OEMs may need a paid vendor assessment, and once your sales cross ₹20 lakh in a financial year you pay an Annual Milestone Charge of ₹10,000 + GST plus a transaction charge on large orders.
No. Caution money was a refundable, turnover-linked deposit that sellers had to keep from 2020. GeM's seller FAQ now says the provision was discontinued in 2025. If you deposited caution money earlier, you can withdraw it from Dashboard → Manage Caution Money Account → Recalculate Threshold → Withdraw Excess Funds, after adding a verified bank account.
You need Aadhaar with its linked mobile number, or your personal PAN; an email ID; business PAN; CIN if you are a company; bank account number and IFSC; registered address; and income tax returns for the last three years if your business is older than two years and you want to bid. Udyam and DPIIT numbers are optional but unlock EMD exemptions.
For central ministries and departments, yes in effect. Rule 149 of the General Financial Rules requires them to buy goods and services through GeM whenever those items are available there. Many states and public sector units also buy through GeM. Some works contracts and items not on GeM still go through other e-procurement portals such as CPPP.
Udyam-registered micro and small enterprises get the Public Procurement Policy benefits: exemption from earnest money deposit, a chance to supply up to 25% of a tender by matching the L1 price if they quote within L1 + 15%, and the government-wide target of buying 25% from MSEs. Traders and distributors are excluded from the policy's preferences.
Creating the seller account and completing the profile can be done in a day if your PAN, Aadhaar or PAN-based identity, ITRs and bank details validate online. Listing products takes longer: OEMs may need vendor assessment, and resellers need authorisation from the OEM before their catalogue goes live.
Sources & verification
Figures on this page were checked against the sources below when it was last reviewed on 7 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify
- 1.GeM — Seller FAQs — Government e-Marketplace (GeM SPV) · accessed 7 October 2026
- 2.GeM celebrates 100 days of governance; announces drastic reduction in its transaction charges — Press Information Bureau, Ministry of Commerce & Industry · accessed 7 October 2026
- 3.Public Procurement Policy for Micro and Small Enterprises (Lok Sabha reply) — Press Information Bureau, Ministry of MSME · accessed 7 October 2026
- 4.FAQs on Public Procurement Policy for MSEs (25.03.2022) — Office of the DC (MSME), Ministry of MSME · accessed 7 October 2026
- 5.Department of Expenditure OM No. F.1/3/2024-PPD dated 10.07.2024 — amendment to GFR 2017 — Ministry of Finance (copy circulated by IIT Kanpur) · accessed 7 October 2026
- 6.GeM seller registration sign-up — Government e-Marketplace · accessed 7 October 2026
- 7.GeM reduces transaction charges; orders above Rs 10 cr to pay flat fee of Rs 3 lakh — ANI · accessed 7 October 2026
MSMETOOLS is an independent platform and is not affiliated with any government agency, ministry or department.
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