GeM registration: free to join, ₹5 lakh crore of orders a year

What is GeM, and who has to buy on it?

The Government e-Marketplace (GeM) is India’s online public procurement portal. Under rule 149 of the General Financial Rules, 2017, central ministries and departments must buy goods and services that are available on GeM — at any value. The value only decides how they buy: direct purchase up to ₹50,000, the lowest of at least three manufacturers’ offers up to ₹10 lakh, and a bid or reverse auction above ₹10 lakh.

Rule

General Financial Rules, 2017, rule 149 — limits as revised by the Department of Expenditure on 10 July 2024.

Up to ₹50,000

Direct purchase from any seller meeting quality, specification and delivery.

₹50,000 to ₹10 lakh

From the seller with the lowest price among at least three different manufacturers.

Above ₹10 lakh

Bid or reverse auction on GeM, awarded to the lowest compliant offer.

Size of the market

Over ₹5 lakh crore of orders in FY 2025-26; ₹5.4 lakh crore in FY 2024-25.

Who sells

25.45 lakh sellers, including 12.25 lakh micro and small enterprises (August 2026).

Gujarat buyers

Gujarat’s State Procurement Policy 2024 requires state procuring entities to buy goods and services through GeM.

Who can sell on GeM

Any legal entity: a proprietorship (including an HUF), partnership firm, LLP, company, trust, society or government entity. The primary user who registers must be a director, partner or proprietor. Manufacturers that want to sell as the original maker must pass vendor assessment; resellers and service providers can sell within the categories that allow them.

What you need to register

Registration is online and free. Keep these ready; the portal validates them against PAN, MCA, ITR, Udyam and bank records.

• Aadhaar with its linked mobile, or personal PANof the director, partner or proprietor
• Business PANand date of incorporation; CIN for companies
• Income tax returnslast three years — needed to bid if the entity is over 24 months old
• Bank account and IFSCfor payments
• GSTINnot needed to register; needed to bid above the GST threshold
• Udyam registrationfor MSE benefits
• DPIIT recognitionfor startup benefits
• Official email addressfor alerts and orders

What GeM costs a seller

Registration is free and the caution-money deposit has been abolished. GeM’s charge applies only to larger orders, after a seller’s orders in the financial year cross ₹20 lakh: 0.30% of orders above ₹10 lakh, capped at ₹3 lakh, plus a one-time ₹10,000 annual milestone charge. Taxes are extra.

The charge is due within 15 days of the award, before the first invoice or by the first delivery date, whichever is earliest; an unpaid charge suspends the account until it is paid.

GeM orders and charges in numbers

Five orders, from a direct purchase to a ₹25 crore bid: how the buyer buys at each value, and what GeM charges the seller. Amounts exclude GST on GeM’s charges.

Vendor assessment: who needs it and what it costs

Under GeM’s Vendor Validation Policy v5.0 (from 25 September 2026), vendor assessment is done by RITES Ltd. It is mandatory for manufacturers (OEMs) of products and optional for resellers. It has a desktop stage for everyone and a video assessment of the factory for OEMs, is expected to take 15 working days, and is valid for three years.

Exemptions

Including OEMs with a valid BIS licence for the category, specified government entities, and KVIC, TRIFED, Coir Board and similar bodies.

Large sellers

Sellers with turnover above ₹500 crore must now apply too.

Renewal

Apply for a fresh assessment at least two months before the report expires.

Why it pays

A valid assessment also exempts you from bid security (EMD) for that product.

Preferences for MSEs, women-owned firms and startups

For central buyers, the Public Procurement Policy for MSEs requires 25% of annual purchases from micro and small enterprises — including 4% from SC/ST-owned and 3% from women-owned MSEs. An MSE within L1 + 15% can match the lowest price and supply up to 25% of the tender. State buyers follow their own policies; Gujarat’s gives purchase preference to Class-I Gujarat MSEs.

Bid security (EMD)

Not charged on GeM bids under ₹5 lakh. MSEs with Udyam that make the offered product, and DPIIT-recognised startups, are exempt (GFR rule 170).

Turnover and experience

Can be relaxed for startups (GFR rule 173) and MSEs; on GeM the buyer chooses this bid by bid.

Reserved items

358 items are reserved for purchase from MSEs by central buyers.

Traders

Traders and distributors are excluded from the central MSE preferences.

Payment

GeM’s terms: 100% within 10 days of the consignee’s receipt-and-acceptance certificate and the online bill.

Late payment

Under section 16 of the MSMED Act, Udyam-registered manufacturing and service MSEs can claim compound interest at three times the RBI bank rate after the agreed date — 45 days at most.

How to register on GeM, step by step

Register the organisation, complete and validate the profile, get vendor assessment if you manufacture, list in the right categories, and start bidding.

1. Register the organisation

   The director, partner or proprietor registers with Aadhaar or personal PAN, and verifies the business PAN.

   Day 1

2. Complete the profile

   Add ITRs, bank account, GSTIN, Udyam and DPIIT details, offices and key persons, and clear every validation.

   Week 1

3. Vendor assessment (manufacturers)

   Apply to RITES Ltd: documents first, then a video assessment of the plant. Expected in 15 working days.

   Weeks 1–4

4. List products or services

   Choose the exact category, get brand approval where needed, and publish catalogues — offered at least 10% below MRP.

5. Bid, supply and get paid

   Take direct orders, bid in your categories, deliver, and invoice online once the buyer issues the acceptance certificate. Payment is due within 10 days.

Why GeM sellers get no orders — or get suspended

1. Name mismatch.Aadhaar name and ITR signatory differ, so PAN validation fails.
2. Wrong category.Buyers search by category; listings in the wrong one are removed, and orders on them are void.
3. Selling as an OEM without assessment.Categories for validated OEMs stay closed until the assessment is done.
4. Prices that do not hold.Offers must be at least 10% below MRP, and a price can be raised only 30 days after the last change.
5. Stale profile.Changes must be updated on GeM within 7 days, or the account can face action.
6. Unpaid GeM charges.The account stays suspended until the charge is paid.

GeM registration: questions we get asked

Rules and official sources

This page follows the General Financial Rules, GeM’s own terms and policies, the MSE procurement policy and PIB releases, all read in full or quoted from the official text.