Tenders Agent

What is GeM, the Government e-Marketplace?

6 min read · Last reviewed 14 August 2026

GeM, the Government e-Marketplace, is India's national online procurement platform, on which central and state government departments, public sector undertakings and other public bodies buy goods and services from registered sellers — operating both as a product catalogue for direct purchase and as a bidding and reverse auction system for larger requirements.

GeM was created to move routine government buying out of paper tendering and onto a single transparent platform. Before it, common-use goods were bought through a mix of rate contracts and departmental tenders, with prices and suppliers varying widely between buyers for the same item. GeM replaced that with one catalogue, one set of registered sellers and a public transaction record.

Why buyers must use it

GFR 2017 Rule 149 makes procurement through GeM mandatory for goods and services available on the platform. A buyer who wants to purchase outside GeM for something GeM carries has to justify it, ordinarily supported by a GeM Availability Report and Past Transaction Summary. For a seller, the consequence is straightforward: if your product category is on GeM and you are not, you are not merely missing a channel — you are outside the default one.

The three ways a purchase happens

GeM is unusual in that most transactions are not tenders. GFR Rule 149 sets out value-based modes, and the thresholds are revised from time to time, so treat the structure below as the shape rather than the current figures:

  1. Direct purchase. Below a low value threshold, a buyer may simply buy a catalogued item from any seller on the platform. No bid, no competition event — your listing and your price are the whole of your pitch.
  2. Comparison purchase. In a middle band, the buyer must compare offers from several sellers on GeM and buy from the lowest. Still catalogue-driven, still no tender.
  3. Bid or reverse auction. Above the higher threshold, the buyer runs a competitive event — a bid, where sealed offers are evaluated, or a reverse auction, where qualified sellers compete on price in real time.

Who can sell

Any registered business entity — proprietorship, partnership, LLP, company, or a registered society or trust — can register as a seller, as can manufacturers, authorised resellers and service providers. Registration requires the business's own identity and tax records and a bank account; Udyam registration is not required to sell, but is required to claim micro and small enterprise benefits, and Make in India classification affects which bids you can win.

What GeM does not cover

GeM carries common-use goods and services. Large civil works, complex turnkey projects and many specialised sector requirements are still tendered elsewhere — on the Central Public Procurement Portal, on state portals, or on a public sector undertaking's own system such as Indian Railways' IREPS. A supplier whose market spans both needs to watch more than GeM.

Key takeaways

Frequently asked questions

What is GeM in government procurement?

GeM, the Government e-Marketplace, is India's national online procurement platform where government departments, public sector undertakings and other public bodies buy goods and services from registered sellers. It works both as a catalogue for direct purchase and as a bidding and reverse auction platform for larger requirements.

Is GeM mandatory for government departments?

Largely yes. GFR 2017 Rule 149 makes procurement through GeM mandatory for goods and services available on the platform. Buying outside GeM for an item GeM carries requires justification, ordinarily supported by a GeM Availability Report and Past Transaction Summary.

Who can register as a seller on GeM?

Any registered business entity — proprietorship, partnership, LLP, company, society or trust — along with manufacturers, authorised resellers and service providers. Registration needs the business's identity and tax records and a bank account. Udyam registration is optional for selling but required to claim micro and small enterprise benefits.

Do all GeM purchases go through a tender?

No. Below the value thresholds set under GFR Rule 149, buyers purchase catalogued items directly or by comparing a small number of sellers on the platform, with no tender at all. Only higher-value requirements go to a bid or reverse auction, so much GeM business is won through the catalogue listing rather than through bidding.

References

More in GeM Guides