Short answer: there is no fee to register as a seller on GeM (the Government e-Marketplace, gem.gov.in). The refundable caution money deposit that used to be charged at registration, ₹5,000 to ₹25,000 by turnover, was removed in August 2025, and sellers who had already paid it can withdraw it from their dashboard. What you may actually pay is a transaction charge once you win orders: nothing on orders up to ₹10 lakh, 0.30% on orders above ₹10 lakh up to ₹10 crore, and a flat ₹3 lakh on larger orders. Some product categories also need a vendor assessment, which has its own fee. Many “GeM registration” sites still quote old charges or bill their own service fee as if it were the government’s. This guide sets out what is current.
This is general information, not legal or tax advice. Use only the official portal, gem.gov.in, to register or pay anything on GeM.
| Item | Current position |
| Seller or service provider registration | Free |
| Caution money (refundable deposit) | Removed in August 2025. Already-deposited amounts can be withdrawn. |
| Transaction charge, order up to ₹10 lakh | Nil |
| Transaction charge, order above ₹10 lakh up to ₹10 crore | 0.30% of the order value |
| Transaction charge, order above ₹10 crore | Flat ₹3 lakh |
| Vendor assessment | Only for categories that require it (mainly original equipment manufacturers and certain products). Non-refundable fee paid on the portal; the rates were rationalised in August 2025. |
The transaction charges come from GeM’s revenue policy effective 9 August 2024. Before that, orders above ₹5 lakh were charged 0.45%, with a cap of ₹72.5 lakh. GeM said at the time that about 97% of orders would now carry no transaction charge at all, because most government orders are below ₹10 lakh. So for a typical small seller, selling on GeM costs nothing in platform fees.
Caution money was a one-time refundable security deposit linked to your turnover, meant to discourage non-serious sellers. GeM removed the requirement as part of the reforms announced on its ninth foundation day in August 2025, along with rationalising vendor assessment fees. The government’s own fact sheet on GeM now lists “removal of Caution Money requirements for sellers” among its reforms. New sellers don’t pay it.
If you deposited caution money earlier, it is sitting in your account. GeM’s steps to withdraw it:
The refund goes to your verified bank account on the seller profile, so make sure a bank account is added, PFMS-verified and marked as primary first. For problems, GeM’s helpline is 1800-419-3436 or 1800-102-3436, or raise a ticket on the portal.
Many consultant pages written before August 2025 still list caution money slabs, and some still say it is required. If a website tells you to pay caution money to register in 2026, it is either outdated or selling something.
| Order value | Transaction charge |
| ₹2,50,000 | Nil |
| ₹10,00,000 | Nil |
| ₹25,00,000 | ₹7,500 (0.30%) |
| ₹2,00,00,000 (₹2 crore) | ₹60,000 (0.30%) |
| ₹50,00,00,000 (₹50 crore) | ₹3,00,000 (flat) |
Build the charge into your bid price on orders above ₹10 lakh. It is a cost of the order, and in your books it is an expense like a marketplace commission.
If you register as an original equipment manufacturer (OEM), or list in categories where GeM requires verification of the manufacturer, you go through a vendor assessment of your facility and documents by GeM’s empanelled agency. Resellers of other brands, and service providers in most categories, don’t need it. The fee is non-refundable and is shown on the portal for your turnover band before you pay; it was rationalised in the August 2025 reforms. Pay only through the portal, never to a third party who offers to “get the assessment done”.
As with Udyam, much of what ranks for “GeM registration fee” comes from consultants. Some are honest about charging for their own service; others present it as a government charge. GeM’s own official social media account has warned sellers that GeM never charges any bidding or registration fee. Watch for:
Paying a consultant to help with catalogues or bids is your choice and can be worth it. Just know that it is their fee, not GeM’s.
Registration starts on gem.gov.in under Sign Up → Seller, with OTP verification of the authorised person and PAN validation, followed by completing the business profile (address, bank, tax details) and then registering your products or services in the right categories. Make sure the business name, address and bank details match your PAN, GST and Udyam records exactly; mismatches are the most common reason profiles get stuck.
The government’s public procurement policy for micro and small enterprises gives registered MSEs advantages in government buying, and GeM applies them on the portal. The most practical one for a small seller is exemption from the earnest money deposit (EMD) in bids, which otherwise ties up cash every time you bid. MSE status on GeM is read from your Udyam registration, so keep it updated, especially your NIC codes and the enterprise name; see our guide to updating the Udyam certificate. Note that, as with other MSME benefits, pure traders registered under trading codes are treated differently, so check the bid conditions.
Is GeM registration free?
Yes. Registering as a seller or service provider on gem.gov.in costs nothing, and caution money is no longer required.
Is caution money still required on GeM in 2026?
No. It was removed in August 2025. If you paid it earlier, withdraw it through Dashboard → Manage Caution Money Account.
What are GeM transaction charges?
Nil on orders up to ₹10 lakh, 0.30% of order value above ₹10 lakh up to ₹10 crore, and a flat ₹3 lakh above ₹10 crore, under the policy effective 9 August 2024.
Do I need GST to register on GeM?
If your business is required to be registered under GST, you need to enter your GSTIN. Government buyers generally expect GST-compliant invoices, so most sellers who intend to bid seriously are registered.
Is there an annual or renewal fee for a GeM seller account?
There is no renewal fee for registration. Treat any “renewal” demand as a red flag and check it with GeM’s helpline.
For more guides on registration, GST and getting paid, see our small business guides.
Sources: Ministry of Commerce and Industry press release of 21 September 2024 on GeM’s revenue policy effective 9 August 2024; Press Information Bureau fact sheet on GeM listing removal of caution money; GeM’s official announcements of August 2025 on caution money withdrawal and vendor assessment fees; Public Procurement Policy for Micro and Small Enterprises Order, 2012, as amended. Updated November 2026.
