Government Tenders for Small Businesses: How to Start Selling on GeM (2026)

Last updated: October 2026

Government offices, railways, hospitals, schools and PSUs buy goods and services every day: furniture, stationery, uniforms, cleaning, security, printing, computers. By rule, a part of this buying must come from micro and small businesses. That makes government orders a real opportunity, even for a small unit.

What Benefits Do Small Businesses Get?

• Reserved share: central government departments and PSUs must buy at least 25% of their purchases from micro and small units (including 4% from SC/ST owners and 3% from women owners)
• No EMD: registered micro and small units usually don't pay the bid deposit (Earnest Money Deposit)
• Free tender documents
• Price support: if your price is within 15% of the lowest bid, you may get part of the order by matching the lowest price
• Relaxed conditions: many tenders relax past experience and turnover rules for small units and startups

To claim these, you need Udyam registration.

What is GeM?

GeM (Government e-Marketplace) is like Amazon, but for government buying. Government buyers log in to gem.gov.in and buy directly from registered sellers. Small orders are bought directly, and bigger ones go through online bids.

How to Register as a Seller on GeM

1. Visit gem.gov.in and click Sign Up → Seller.
2. Verify the owner's mobile number (Aadhaar- or PAN-linked).
3. Enter PAN, GST number, Udyam number, address and bank account.
4. Complete your seller profile. A one-time caution money may apply, with lower amounts for small units.
5. Add your products or services with clear photos, specifications and prices.

Tip: During Udyam registration you can also opt to register on GeM.

Other Places to Find Government Tenders

• Central tenders: eprocure.gov.in
• State tenders: your state's e-tender portal (for example, mahatenders.gov.in in Maharashtra)
• Railways: ireps.gov.in

7 Tips to Win Your First Government Order

1. Start small: low-value direct orders on GeM help you build ratings.
2. Read every condition: most bids are rejected for a missing document, not for price.
3. Keep a document folder ready: Udyam certificate, GST returns, ITRs, bank details, quality certificates.
4. Price smartly: include GST, transport and the waiting time for payment.
5. Deliver on time: late delivery hurts your rating and future orders.
6. Check tenders daily: set alerts for your product keywords.
7. Know your payment rights: government buyers must also pay micro and small suppliers on time (45-day rule).

Common Questions

Is GeM registration free?

Registration is free. A one-time caution money may apply depending on your turnover, with lower amounts for small units.

Can a new business with no experience get government orders?

Yes. Many bids relax experience rules for small units and startups. Check each bid's eligibility section.

Do traders get the EMD exemption?

Usually the exemption is for what you make or the service you provide. Pure resellers may not get it everywhere, so read each tender's terms.

Disclaimer: General information only. Tender rules differ; always follow the conditions in the tender document.