GeM Seller Guide: Registration & Fees Explained

Your complete guide to Government e-Marketplace (GeM) seller registration. Learn about eligibility, documents, transaction charges, and how to bid.

Anshul Agarwala5 min read
GeM Seller Guide: Registration & Fees Explained

Your Ultimate Guide to Selling on the Government e-Marketplace (GeM)

The Government of India has created a dedicated digital e-market for public sector procurement. This platform, known as the Government e-Marketplace or GeM, transforms how Government Organisations, PSUs, and Departments buy goods and services. It replaces outdated systems with a streamlined digital e-commerce portal. So, what is Government e-Marketplace? It's a one-stop-shop designed to make public procurement transparent, efficient, and fast. The GeM portal for government procurement includes modern features like e-bidding, a GeM reverse e-auction process, and demand aggregation. This creates a fair and thriving ecosystem for every seller, including startups, MSMEs, and traditional Emporium product sellers.

Top Benefits of GeM Registration for MSMEs & Startups 🚀

Why should your business choose GeM? This platform provides direct entry to the vast National Public Procurement Market. You get immediate access to tender opportunities from government departments. The key benefits of GeM registration for MSMEs and startups include:

  • Direct Market Access: Connect directly with government buyers without intermediaries.
  • User-Friendly Platform: GeM offers a simple, fully automated interface with a seller-friendly dashboard to track supplies and payments.
  • Transparency: The process for selling on GeM portal is clear, promoting fair competition.
  • Equal Opportunity: GeM registration for startups and smaller companies ensures they can compete on a level playing field.

GeM Registration Eligibility Criteria ✅

The platform is open to all types of sellers. Any legitimate business can register to sell products and services. The GeM registration eligibility criteria are designed to be inclusive, allowing any company to bid for tenders on GeM. After completing your government e marketplace seller registration, you can start listing your products and services immediately.

Documents Required for GeM Seller Registration 📄

To ensure a smooth registration, gather the necessary paperwork beforehand. The documents required for GeM seller registration are straightforward. You will need:

  • PAN Card
  • Aadhaar Card of the applicant
  • Active mobile phone number and email ID
  • MSME certificate or Udyog Aadhaar (if applicable)
  • GST Registration Certificate
  • A cancelled cheque from your company's bank account
  • Supporting documents like product photos and lists

Is GeM Registration Really Free? The Fee Breakdown 💸

A common question is about the costs involved. Let's break it down clearly.

GeM Registration Fees: Zero Cost to Start

The Government of India does not charge any GeM registration fee. You can register as a buyer or a seller on the GeM portal for free. There is no GST applicable on registration because it is cost-free. While you can hire a consultant for the process, remember that any fee you pay them is for their service, not a government charge.

Understanding GeM Transaction Charges for Sellers

While registration is free, GeM does have a Revenue Policy involving transaction charges. These are not hidden fees but are applicable only after your sales cross a certain threshold. Sellers need to pay GeM transaction charges when their sales value meets specific criteria.

GeM Seller Merchandise Value (SMV) & Annual Charges Explained 📊

The GeM portal uses a metric called Seller Merchandise Value (SMV). What is GeM seller merchandise value explained simply? It is the total cumulative value of orders placed or accepted by a seller on the portal within a single financial year. Once your SMV reaches ₹20 lakh in a financial year, the portal applies a GeM annual milestone charge of 0.5%.

GeM Transaction Charges Slab: A Detailed Look 📋

GeM transaction charges for sellers are different from the annual charge and apply only to individual orders exceeding ₹5 lakh. You can pay these charges when you accept the order. The GeM transaction charges slab is as follows:

Order Value

GEM Transaction Charges

₹5 Lakh to ₹50 Cr

0.5% of the Order Value

₹50 Cr to ₹100 Cr

₹25 lakh + 0.4% of the Order Value above 50 Cr

₹100 Cr to ₹200 Cr

₹45 lakh + 0.3% of the Order Value above 100 Cr

₹200 to ₹300 Cr

₹75 lakh + 0.2% of the Order Value above 200 Cr

₹300 to ₹500 Cr

₹95 lakh + 0.1% of the Order Value above 300 Cr

₹500 Cr onwards

Flat fee of ₹115 lakh

For forward auctions, the charges are slightly different:

Order Value

Transaction Charges

< ₹200 Cr

0.5% of the Order Value

> ₹200 Cr

Flat ₹1 Cr

In forward auctions, the buyer bears these transaction costs at the time of order approval.

How to Pay GeM Transaction Charges Online 💻

Paying the Annual Milestone Charge (AMC) or other transaction fees is simple. Follow these steps on how to pay GeM transaction charges:

  1. Log in to the GeM portal and find the 'Pay AMC/TC' button.
  2. Two options will appear: 'Pay bifurcation' and 'Pay now'.
  3. Click 'Pay now'.
  4. Select your preferred payment method: NEFT, RTGS, or net banking.

How to Bid for Tenders on GeM 🏛️

Knowing how to bid for tenders on GeM is crucial for success. The platform primarily uses e-bidding and reverse e-auctions. In e-bidding, sellers submit their best offers electronically. In a reverse e-auction, sellers compete to offer the lowest price for a specific product or service, with the lowest bidder winning the contract. This process drives competitive pricing and transparency, benefiting both buyers and sellers.

Find and Win GeM Tenders with Ease ✨

The GeM marketplace is vast, with thousands of new govt tender listings daily. Sifting through them to find the right opportunities can be overwhelming. TenderX simplifies this by consolidating opportunities from over 50 portals and 3000+ organizations, adding 20,000 new tenders every day. Our platform helps you find relevant tenders based on your profile and sends real-time notifications so you never miss a deadline. With tools like Contractor Intelligence, you can analyze past wins and refine your bidding strategy to stay ahead of the competition. Start your search for the perfect online tender today. For any assistance with your tendering journey, feel free to reach out to us.

Email: info@tenderx.in

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