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AiHisab Knowledge By Atulya Intelligence
Startup India & GeM

GeM Registration & Selling

2 min read Updated 03 Oct 2026 2 views
AI summary

Government e-Marketplace: registration, caution money, charges and bidding.

8 sections

Key facts

  • GeM (Government e-Marketplace, gem.gov.in) is the online portal where central and state government departments and PSUs buy goods and services.
  • Seller registration is free. It needs Aadhaar or PAN-based verification of the authorised person, business PAN, GSTIN (if registered), Udyam (for MSME benefits), bank account and ITR details.
  • Refundable caution money is deposited once on registration, based on turnover: ₹5,000 (up to ₹1 crore or no ITR), ₹10,000 (₹1–10 crore), ₹25,000 (above ₹10 crore).
  • Transaction charges (from August 2024): nil on orders up to ₹10 lakh; 0.30% of order value for orders above ₹10 lakh up to ₹10 crore; a flat ₹3 lakh for orders above ₹10 crore.
  • Buying modes: direct purchase up to ₹50,000, L1 purchase (lowest of at least 3 sellers) above that, and bids or reverse auctions for larger or custom requirements.
  • Udyam-registered MSMEs and DPIIT-recognised startups get EMD exemption in bids, and purchase preference for MSMEs applies under the Public Procurement Policy.
  • Keep the catalogue, prices and stock updated; late delivery or rejection affects your seller rating and can lead to suspension.

Common questions

How do I register on GeM as a seller?

On gem.gov.in, choose seller registration, verify the authorised person with Aadhaar/PAN and mobile OTP, add business PAN, GSTIN, Udyam and bank details, complete the profile (office address, ITR, experience), pay the refundable caution money, and then list products or services in the right categories.

Is there a fee for GeM registration?

No. Registration is free. You only deposit refundable caution money (₹5,000 to ₹25,000 depending on turnover) and pay transaction charges on orders above ₹10 lakh.

What is caution money on GeM?

A one-time refundable deposit paid during seller registration, based on the latest ITR turnover: ₹5,000 (up to ₹1 crore or no ITR), ₹10,000 (₹1–10 crore) and ₹25,000 (above ₹10 crore). It can be forfeited for serious defaults like fake documents or repeated non-supply.

What are GeM transaction charges?

Nil on orders up to ₹10 lakh, 0.30% of the order value for orders above ₹10 lakh up to ₹10 crore, and a flat ₹3 lakh for orders above ₹10 crore (revised in August 2024).

Do MSMEs get benefits on GeM?

Yes. Udyam-registered micro and small enterprises get EMD exemption in bids, purchase preference under the Public Procurement Policy, and MSE filters that buyers can apply.

What documents are needed for GeM registration?

PAN of the business, Aadhaar of the authorised person, GSTIN (if applicable), Udyam certificate for MSME benefits, bank account details, ITRs, and for companies the CIN; OEMs also need brand and product documents.

In Hisab Central: Raise the invoice for a GeM order in Hisab Central with the GeM order number in the reference field so it matches the CRAC/payment entry.
Law as of September 2026. Verify against the latest notifications before relying on it for filings.
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