How to Sell to the Government on GeM: Seller Registration Guide for Small Businesses

This guide is for small manufacturers, traders, service providers and shop owners in Bihar who want to sell to the government on the GeM portal (Government e-Marketplace). It covers GeM seller registration step by step, the documents you need, the special benefits for MSEs, how direct purchase and bidding work, how you get paid, and the mistakes that get new sellers suspended.

Every day, government schools, offices, hospitals, police stations and public sector units buy things like printer paper, chairs, LED lights, water coolers, uniforms, cleaning services and vehicle hire. Most central government buying, and a large share of state buying, now happens through gem.gov.in. A hardware shop in Ara or a furniture maker in Muzaffarpur can compete for these orders from a laptop.

What is GeM and who buys on it?

GeM is the national online marketplace for public procurement. Buyers include central ministries and departments, their offices across Bihar, central PSUs, many state government departments, autonomous bodies and local bodies that have adopted it.

Sellers can be:

• OEMs (manufacturers) who make the product under their own brand
• Resellers who sell another company's branded product with authorisation
• Service providers for services like manpower, cleaning, vehicle hire, catering or printing

Who can register as a GeM seller?

Proprietorships, partnership firms, LLPs, companies, societies and cooperatives can register. You need a working business with a PAN and bank account. For most goods categories you also need a GSTIN.

You do not need to be a big company. Many sellers on GeM are micro enterprises, and the government actively wants more of them.

Documents you need for GeM registration

Keep these ready as scanned copies before you start:

• PAN of the business (and of the proprietor for a proprietorship)
• Aadhaar of the authorised person, linked to a working mobile number for OTP
• GSTIN (for most product categories)
• Udyam registration certificate (strongly recommended for MSE benefits)
• Bank account details with a cancelled cheque
• Income tax return details of recent years
• Office or shop address details
• For resellers: authorisation from the brand or OEM where required
• For OEMs: details needed for vendor assessment in certain categories

If you do not have Udyam yet, get it first on udyamregistration.gov.in. It is free and online, and our Udyam registration guide explains each field. For GST, see our GST registration guide for Bihar.

GeM seller registration: step by step

1. Go to gem.gov.in and choose Seller sign-up. Accept the terms.
2. Verify identity with PAN and Aadhaar-based OTP of the authorised person.
3. Create your user ID and password, and set up email and mobile.
4. Complete the seller profile: business details, office address, bank account, tax details, Udyam and GSTIN.
5. Deposit caution money. GeM asks sellers to keep a caution money amount in their account, based on turnover slab. The exact amount is shown in your dashboard during registration.
6. Vendor assessment (only where required). Some OEM categories require assessment of your manufacturing facility before you can list.
7. Add products or services to the catalogue. Choose the correct category, fill specifications exactly, upload clear photos, set price, stock and delivery locations.
8. Wait for catalogue approval, then start receiving orders and bid alerts.

Registration can be done in a day if documents are ready. Catalogue approval and vendor assessment take longer.

How government buyers purchase on GeM

Understanding the buying methods helps you decide where to compete. The General Financial Rules were amended in July 2024, and the current limits for goods on GeM are:

• Up to ₹50,000: direct purchase. The buyer can order from any available seller who meets the requirement. Good ratings, correct specifications and delivery to the right location matter here.
• Above ₹50,000 and up to ₹10 lakh: L1 purchase. The buyer compares at least a few sellers and orders from the lowest price (L1) that meets the specification.
• Above ₹10 lakh: bid or reverse auction. The buyer publishes a bid with eligibility conditions, and sellers submit technical and price offers.

For a small seller, direct purchase and L1 orders are the easiest way to build a track record. Once you have completed a few orders on time, you can take on bids.

Tips for winning bids

• Read the full bid document and every attached ATC (additional terms and conditions). Many rejections happen because of a missing certificate.
• Check the delivery location and period before quoting. A bid for delivery in Kishanganj may not suit a seller in Buxar.
• Upload every document asked for, clearly named.
• Quote a price you can actually deliver at. Pulling out after winning hurts your rating and can attract penalties.

MSE benefits on GeM: why Udyam matters

The Public Procurement Policy for Micro and Small Enterprises Order sets a target for central ministries, departments and PSUs to buy a share of their annual procurement from MSEs, with sub-targets for SC/ST-owned and women-owned enterprises.

What this means for you on GeM, when you declare your Udyam registration:

• EMD exemption: MSEs registered for the relevant item are generally exempt from paying Earnest Money Deposit in bids.
• Purchase preference: In many bids, MSE sellers quoting within a band of the L1 price can be asked to match L1 and get a share of the order.
• Relaxations in some bids on prior experience and turnover for MSEs and recognised startups, if the buyer allows it.

Always check the bid document, because each buyer sets the exact conditions.

Fees on GeM: what it actually costs

• Registration: free.
• Caution money: a security amount kept with GeM, scaled to your turnover.
• Transaction charges: under the revision announced in September 2024, there is no transaction charge on orders up to ₹10 lakh, 0.30% on orders above ₹10 lakh and up to ₹10 crore, and a flat ₹3 lakh above ₹10 crore.

For a small seller, most orders fall under ₹10 lakh, so the main costs are your own: packaging, delivery to the consignee, and time spent on paperwork.

Getting paid on GeM

The payment cycle works like this:

1. The buyer places the order and you accept it on the portal.
2. You deliver and upload the invoice.
3. The consignee inspects and issues a CRAC (Consignee Receipt and Acceptance Certificate).
4. The paying authority releases payment to your bank account.

GeM rules expect payment within 10 days of CRAC, and buyer organisations are charged penal interest for delays. If payment is stuck, raise an incident on the GeM portal and follow up politely with the buyer office. Our guide on cash flow management for small businesses helps you plan for the gap between buying stock and receiving payment.

Worked example: a stationery shop in Gaya

Suppose a stationery and printing shop in Gaya registers on GeM with Udyam and GST. It lists A4 paper, registers, files and toner in its catalogue, with delivery set to Gaya, Nawada and Aurangabad districts.

• In the first two months it gets a few direct-purchase orders of ₹8,000 to ₹40,000 from nearby offices.
• It delivers within the promised period, gets CRACs and payments, and builds ratings.
• By month four it participates in a ₹6 lakh L1 requirement and a small bid with EMD exemption as an MSE.

The shop pays no transaction charge on any of these orders because each is under ₹10 lakh. The real work is keeping stock ready and paperwork clean.

Common pitfalls that get new GeM sellers into trouble

• Wrong catalogue specifications. If you deliver something different from what your listing says, the buyer can reject it.
• Unrealistic stock or delivery promises. Failing to supply leads to penalties and rating drops.
• Ignoring the order. Orders have acceptance and delivery timelines; missing them can lead to cancellation.
• Brand authorisation issues when reselling branded goods.
• Not updating bank or GST details, which delays payment.
• Paying agents who promise orders. No one can guarantee you GeM orders. Registration is free and can be done yourself or at a CSC centre.

Next steps

Get Udyam and GST in order, register on GeM, and start with a small catalogue of items you can always deliver. Build ratings on direct-purchase orders before chasing big bids. While you grow government sales, keep your local customers coming too: list your business free on Bihar Directory so buyers across Bihar can find your shop, call you and see your offers. If you also want to sell to consumers online, read our guide to selling on ONDC.

This is general information, not legal or tax advice. Confirm current GeM rules, charges and bid terms on gem.gov.in before you act.