At a glance
| Parameter | Detail |
|---|---|
| What GeM is | The Government e Marketplace for public procurement |
| Who buys there | Central and state departments, PSUs and autonomous bodies |
| MSME precondition | A valid Udyam Registration Number |
| Turnover and experience criteria | Exemption available to MSME sellers |
| Earnest money deposit | Relief available to MSME sellers |
| Reserved procurement | Categories reserved for MSMEs under public procurement policy |
| Cost of Udyam | Zero government fee |
Why GeM is the strongest practical argument for registering
Most MSME benefits are financial and indirect. GeM is neither. It is a demand channel, and the concessions attached to MSME status remove exactly the barriers that keep small suppliers out of public procurement.
A new enterprise cannot demonstrate three years of turnover or a history of comparable contracts. Exemption from prior turnover and experience criteria is therefore the difference between being able to bid and not.
What the concessions do in practice
- Exemption from prior turnover criteria, so a young enterprise is not screened out before evaluation
- Exemption from prior experience criteria, which otherwise creates a circular problem for first-time bidders
- Relief from earnest money deposit, which frees up working capital across multiple simultaneous bids
Getting the Udyam side right first
GeM reads the Udyam certificate. That means the details on it need to be accurate before you register as a seller, not after.
Three checks are worth doing. The enterprise name and constitution on Udyam should match the PAN and the bank account you will use for settlement. The NIC activity codes should cover what you intend to sell, because a mismatch between the registered activity and the listed products invites questions. And the turnover and investment data should be current, since the category on the certificate is what determines your concessions.
Selling under a trade name that does not appear on the Udyam certificate
- A single generic NIC code that does not cover the product categories being listed
A stale certificate showing a category the enterprise has since outgrown
- A duplicate Udyam registration against the same PAN, so it is unclear which one applies
Do I need Udyam registration to sell on GeM?
You can register as a seller without it, but the MSME concessions on GeM are attached to MSME status, which is established through Udyam registration. Without it you compete on the same turnover and experience criteria as large suppliers. For a young enterprise the exemption from prior turnover and experience criteria is usually the decisive concession, because without it there is no route past the first screening stage.
Does GeM verify my Udyam details?
Enterprise details are cross-checked against the Udyam record, which is why the name, constitution, activity codes and category on the certificate need to be accurate and current before you register as a seller. A mismatch between the trade name you sell under and the enterprise name on the certificate is the most common cause of onboarding friction, and it is far easier to correct on Udyam beforehand.
Is there a government fee for Udyam?
No. Udyam registration, updating, correction and cancellation are all free on the official portal. Any charge is a professional fee for advisory or filing work, not a government levy. The Ministry of MSME states plainly that the process is zero cost and that udyamregistration.gov.in is the only official portal. A large number of paid look-alike sites rank on search, so check the domain before entering any details.
Can a trading business sell on GeM as an MSME?
Retail and wholesale traders can hold a Udyam registration and can sell on GeM. Note that trade recognition under Udyam is oriented to priority sector lending, and it does not carry the delayed payment protection that manufacturers and service providers have.
What if my NIC codes do not cover what I want to sell?
Add the codes. NIC codes can be edited or added on the Udyam portal free of cost, and it is far easier to do that before listing products than to explain a mismatch during buyer verification. Listing products that fall outside your registered activity codes invites questions during buyer verification, and the fix at that stage is the same edit you could have made before listing.
About the author
CA & CS Team
Regikart at Regikart. Want to discuss this in the context of your business?