For Micro, Small and Medium Enterprises (MSMEs), getting government orders was once a complex and paperwork-heavy process. Limited access, middlemen, delayed payments, and lack of transparency made it difficult for small businesses to participate in public procurement.To solve these challenges, the Government of India launched the Government e-Marketplace (GeM)—a digital platform that has opened massive opportunities for MSMEs across the country.
In this article, we explain what GeM is, how it works, and how MSMEs can benefit from selling directly to government buyers.
What is Government e-Marketplace (GeM)?
Government e-Marketplace (GeM) is an online procurement portal developed by the Government of India to facilitate transparent and efficient purchasing of goods and services by government departments, ministries, public sector undertakings (PSUs), and autonomous bodies.
Through GeM, MSMEs can sell products and services directly to government buyers, without middlemen, at competitive prices.
Why Government e-Marketplace (GeM) is Important for MSMEs
GeM has been designed with a strong focus on promoting Make in India, Vocal for Local, and MSME growth. Today, lakhs of MSMEs are actively selling on GeM and receiving regular government orders.
Key Reasons MSMEs Should Join GeM
- Direct access to government buyers
- Equal opportunity for small businesses
- Transparent bidding and pricing
- Faster payments
- Nationwide reach without extra marketing cost
Key Benefits of Government e-Marketplace (GeM) for MSMEs
1. Direct Government Orders
GeM eliminates intermediaries and allows MSMEs to sell directly to central and state government departments, PSUs, and organizations.
2. No Tender Complexity for Small Orders
For orders up to a certain value, government buyers can purchase directly from MSMEs without lengthy tender processes—making it easier for small sellers to win orders.
3. Timely and Secure Payments
Payments on GeM are processed online, ensuring faster and more transparent payments, which is crucial for MSME cash flow.
4. Level Playing Field
GeM gives equal visibility to all registered sellers, regardless of size. Small businesses can compete with large companies based on price, quality, and ratings.
5. Pan-India Market Access
An MSME registered on GeM can sell products or services to buyers across India without setting up offices in multiple locations.
Who Can Register on Government e-Marketplace (GeM)?
The following MSMEs can register as sellers on GeM:
- Manufacturers
- Traders
- Service providers
- Startups
- Proprietorships, partnerships, LLPs, and private limited companies
MSME or Udyam Registration is highly recommended, as it provides additional benefits and preference in government procurement.
Documents Required for GeM Registration (Seller)
To register on GeM, MSMEs generally need:
- PAN card
- Aadhaar (linked with mobile)
- Business bank account details
- Udyam Registration Certificate
- GST registration (if applicable)
- Email ID and mobile number
How MSMEs Can Register on Government e-Marketplace (GeM)
The registration process is fully online and simple:
- Visit the official GeM portal
- Choose Seller Registration
- Verify Aadhaar and PAN
- Add business and bank detailsUpload required documents
- List products or services on the portal
- Once approved, MSMEs can start receiving bids, orders, and direct purchase requests from government buyers.
Tips for MSMEs to Win More Orders on Government e-Marketplace (GeM)
- Optimize product titles & descriptions
- Upload high-quality images
- Keep pricing competitive but sustainable
- Maintain good seller ratings
- Respond quickly to bids & buyer queries
- Ensure timely delivery & compliance
Government e-Marketplace (GeM) FAQ
What is Government e-Marketplace or GeM?
Government e-Marketplace, also known as GeM, is an online platform where government departments buy products and services directly from registered sellers, including MSMEs, in a transparent and digital manner.
How can MSMEs benefit from GeM?
MSMEs can sell directly to government buyers on GeM, get access to large public procurement orders, avoid middlemen, receive faster payments, and benefit from MSME purchase preference policies.
Is GeM registration free for MSMEs?
Yes, GeM registration is completely free for MSMEs. There is no registration fee or commission charged for selling on the GeM portal.
Who can sell on the GeM portal?
Any eligible business such as MSMEs, startups, manufacturers, service providers, and authorized resellers can sell on GeM after completing seller registration.
Is Udyam Registration mandatory for GeM?
Udyam Registration is not mandatory for all sellers, but it is strongly recommended for MSMEs to avail purchase preference, exemptions, and MSME-specific benefits on GeM.
What documents are required for GeM seller registration?
To register on GeM, sellers generally need Aadhaar, PAN, bank account details, business information, and Udyam Registration certificate. GST is required for GST-applicable products or services.
What products can MSMEs sell on GeM?
MSMEs can sell a wide range of products such as office supplies, IT equipment, machinery, electrical goods, medical items, and industrial products listed under approved GeM categories.
What services can MSMEs offer on GeM?
MSMEs can provide services like manpower supply, security services, housekeeping, IT services, consulting, logistics, and professional services through the GeM portal.
How does selling work on GeM?
Selling on GeM happens through direct purchase, bidding, or reverse auction. Government buyers choose products or invite bids, and sellers compete based on price and compliance.
How do MSMEs get orders on GeM?
MSMEs get orders when government buyers select their products directly or when they win bids and reverse auctions by offering competitive pricing and meeting quality requirements.
How long does payment take on GeM?
Payments on GeM are usually processed within 10 to 20 days after order completion and acceptance by the buyer, helping MSMEs maintain healthy cash flow.
Is GST mandatory for selling on GeM?
GST is mandatory for products and services where GST is applicable. Some exempt categories may not require GST registration.
Can small businesses with no government experience sell on GeM?
Yes, even first-time sellers and small businesses with no prior government experience can sell on GeM, as the platform is designed to support new and micro enterprises.
Is GeM compulsory for government departments?
Yes, most central and state government departments are required to procure goods and services through the GeM portal as per government procurement rules.
What is reverse auction on GeM?
Reverse auction on GeM is a bidding process where multiple sellers compete by offering lower prices, and the government buyer selects the most competitive and compliant offer.
How can MSMEs increase sales on GeM?
MSMEs can increase sales on GeM by maintaining competitive pricing, improving product descriptions, uploading quality images, ensuring timely delivery, and maintaining high seller ratings.