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GeM Portal 2026 Rule Changes: 10 Updates Every MSME Seller Must Know
GeM Portal 2026 Rule Changes: New Rules Every MSME Seller Must Know
The Government e-Marketplace made more changes in early 2026 than it had in any comparable period since its launch. Caution money is gone. MSE reverification is now mandatory. BIS certification enforcement has teeth. New categories have opened. And ONDC integration is expanding where GeM sellers can sell.
If you are an existing GeM seller and have not checked your profile since December 2025, some of these changes may already be affecting your bid eligibility and MSME benefits — without any notification reaching you. If you are planning to register, the process has changed and is now faster and cheaper than it has ever been.
This guide covers every significant rule change on GeM in 2026, what each one means for your business, and exactly what you need to do about each one before your next bid.
Key Takeaways
- Caution money is officially discontinued. GeM removed the mandatory Caution Money Deposit under Revenue Policy v1.6. New sellers pay zero deposit. Existing sellers can reclaim their deposited amount through the seller dashboard now.
- MSE reverification is mandatory for all MSE service providers who participated in any service bid after 3rd February 2026. Failure to reverify means loss of purchase preference, EMD waiver, and the L1+15% price matching benefit.
- Udyam Registration is now effectively non-negotiable for competitive GeM participation. Without it, MSMEs cannot claim the 25% procurement reservation, L1+15% price preference, or EMD exemption.
- BIS certification enforcement has been significantly tightened. Products in mandatory-certification categories listed without a valid BIS certificate are now subject to listing removal and account suspension — not just a warning.
- New categories including EV products, solar energy, cybersecurity services, drone components, and eWaste V2 are active. Sellers in these spaces must register under the correct new category before bidding.
- GeM–ONDC integration is live. MSE sellers can now access expanded B2C market reach through the MSME TEAM Initiative at zero cost.
- ₹4+ lakh crore in annual GeM procurement means ₹1+ lakh crore is reserved for MSMEs annually. These rule changes determine who gets access to that pool.
GeM in 2026: The Scale of What You Are Competing For
₹4+ L Cr
Annual procurement through GeM — the largest government marketplace in the world
25%
Of all central government procurement mandatorily reserved for MSMEs
L1 + 15%
Price margin within which MSMEs get purchase preference over non-MSME L1 bidders
₹0
Caution money required from new sellers — down from ₹5,000–₹25,000
If you deposited caution money previously — reclaim it now. GeM has discontinued the Caution Money Deposit requirement. Existing sellers who paid ₹5,000–₹25,000 as caution money can withdraw the full amount through their GeM seller dashboard under Manage Caution Money. For support, call the GeM helpline at 1800 419 3436 or raise a support ticket on the GeM portal.
All GeM 2026 Rule Changes at a Glance
The table below consolidates every significant policy and process change on GeM in 2025–2026. Use it as a compliance checklist for your seller account.
| Change | What Was the Old Rule | What Is the New Rule (2026) | Action Required |
|---|---|---|---|
| Caution Money Changed | Mandatory refundable deposit of ₹5,000–₹25,000 based on annual turnover at the time of registration | Discontinued under Revenue Policy v1.6. Zero deposit required for new or existing sellers | New sellers: none needed. Existing sellers: withdraw deposited amount via seller dashboard |
| MSE Reverification Action Required | One-time verification at registration — no periodic reverification required | All MSE service providers who bid in any service after 3 Feb 2026 must reverify their MSE status in their profile | Log into GeM seller dashboard → Profile → MSME details → Reverify using current Udyam Registration Number |
| Udyam Registration Changed | Optional for basic registration; MSE benefits could be claimed via UAM (Udyog Aadhaar) | UAM no longer accepted for MSME benefit claims. Valid Udyam Registration Number mandatory to access any MSME preference | Register at udyamregistration.gov.in if not already done. Update Udyam details in GeM profile under MSE section |
| Aadhaar-Mobile Linkage Changed | Aadhaar linkage required but verification was manual-checked or relaxed | Stricter enforcement — Aadhaar OTP verification requires the mobile number registered with UIDAI to be active and linked. Mismatches cause registration failure | Verify Aadhaar-mobile linkage at uidai.gov.in before starting registration or profile updates |
| BIS Certification Action Required | BIS required for mandatory categories but enforcement was inconsistent — listings often stayed live despite lapses | Active enforcement: listings in mandatory-certification categories without valid BIS certificates are removed immediately. Account suspension for repeated violations | Check whether your product category requires BIS certification at bis.gov.in. Renew lapsed certificates before the next listing cycle |
| AI-Driven Verification New | Document verification was manual with longer processing timelines | AI-powered verification for PAN, GST, bank details, and business registration — significantly faster onboarding. Also used for ongoing fraud detection | Ensure all documents are current and consistent across PAN, GST, ITR, and bank records — AI matching is stricter than manual review |
| eWaste Category New | eWaste V1 category — older framework with different certification requirements | New eWaste V2 category launched. V1 registrations no longer valid for new bids | eWaste sellers must register under the new V2 category and upload required certificates. Previous V1 registrations do not carry over automatically |
| ONDC Integration New | GeM was limited to government procurement — B2C market access not available through the same platform | GeM sellers can now access ONDC through the MSME TEAM Initiative — expanding reach to private and commercial buyers beyond government departments | Udyam-registered MSEs can enrol on the MSME TEAM portal at team.msmemart.com to activate ONDC access |
| New Product Categories New | EV, solar, cybersecurity, and drones were not separately categorised or had limited listing options | Dedicated categories for EV products and charging equipment, solar energy products, cybersecurity services, and drone services now active | Sellers in these sectors must register under the new category-specific framework and upload sector-specific certifications |
| Vendor Assessment Fee Changed | Variable fees depending on category and assessor; inconsistent across seller types | Standardised at ₹11,200 + GST — one-time, non-refundable. Applicable to OEMs and mandatory-assessment categories | Budget for this cost in your registration plan if you are an OEM. Not applicable to all sellers — check your category requirements first |
Change 1: Caution Money Discontinued — Zero Deposit Required
This is the most commercially significant change for new sellers. GeM has officially discontinued the Caution Money Deposit requirement under Revenue Policy v1.6, effective in 2026.
Previously, every seller registering on GeM had to deposit a mandatory refundable security deposit before their account was activated. The amount was tiered by annual turnover: ₹5,000 for turnover below ₹1 crore, ₹10,000 for ₹1–10 crore, and ₹25,000 for above ₹10 crore. While the deposit was refundable on account closure, it blocked capital unnecessarily and discouraged small sellers from registering.
Under the new rules, new sellers pay zero caution money. Accounts can be fully activated and bid-ready after verifying PAN, GST, and bank details — with no waiting period for deposit clearance. The change applies to all seller types — OEMs, resellers, and service providers — regardless of turnover or category.
Already registered? You have money waiting. If you deposited caution money before the policy change, that amount is sitting in your GeM account and can be withdrawn immediately. Log into your GeM seller dashboard, navigate to Manage Caution Money, and initiate the withdrawal. If you face any issue, call 1800 419 3436 or raise a GeM support ticket.
Change 2: MSE Reverification — Mandatory for Service Providers
This is the most urgent action item for existing MSME sellers on GeM. GeM issued an advisory in early 2026 requiring all MSE service providers who participated in any service bid after 3rd February 2026 to reverify their MSE status in their GeM profile.
This is not optional. Sellers who do not complete reverification risk losing all MSME-specific benefits on their account — including purchase preference, EMD exemption, and the L1+15% price matching privilege that can secure orders even when you are not the cheapest bidder. These benefits collectively represent a substantial commercial advantage. Losing them by simply not completing a profile update would be an entirely avoidable error.
How to reverify your MSE status on GeM:
- Log into your GeM seller account at gem.gov.in
- Go to Seller Profile → MSME / MSE Details
- Enter your current Udyam Registration Number
- Verify using the mobile number or Aadhaar linked to your Udyam registration
- Confirm profile update and save
- Wait 24–48 hours for Udyam portal verification to sync
MSE reverification also applies to goods sellers in select categories where GeM has updated its verification framework. If you are unsure whether your category requires reverification, check the GeM latest updates section at gem.gov.in/latest or contact the helpdesk.
Change 3: Udyam Registration — Now Effectively Non-Negotiable
GeM has stopped accepting Udyog Aadhaar Memorandum (UAM) numbers for MSME benefit claims. Only a valid Udyam Registration Number — the 19-digit identifier from the udyamregistration.gov.in portal — is accepted for accessing any MSME preference on GeM.
While GeM technically still allows sellers to register without Udyam, competing without it means competing without access to:
- The 25% mandatory procurement reservation — government departments must source 25% of their requirements from MSMEs
- The L1+15% purchase preference — if the lowest bidder is not an MSME but you are within 15% of their price, you can be offered the order at the L1 price
- The EMD exemption — no Earnest Money Deposit required for bids
- The prior experience and prior turnover waiver for startups registered as MSMEs
- Access to GeM Sahay — the credit facility for MSMEs with pending government orders
In most product categories on GeM, the majority of competitive sellers hold Udyam registration. Bidding without it is not just a disadvantage — it is a structural handicap that makes winning orders significantly harder than it needs to be.
Change 4: Stricter Aadhaar-Mobile Linkage Enforcement
GeM has tightened the Aadhaar verification requirement during both new registration and profile updates. The OTP-based Aadhaar verification now requires the mobile number registered with UIDAI to be active and correctly linked. Mismatches between the mobile number in your GeM profile and the number linked with your Aadhaar cause registration failures or profile update errors.
This change has created friction for sellers whose Aadhaar-linked mobile numbers are old, inactive, or registered on a different SIM. Before attempting GeM registration or profile changes, verify your Aadhaar-mobile link at uidai.gov.in. If the linked number is no longer active, update it at your nearest Aadhaar Seva Kendra before proceeding.
| Common Aadhaar-Related Error on GeM | Cause | Fix |
|---|---|---|
| OTP not received during registration | Mobile number in GeM does not match UIDAI-registered mobile | Update Aadhaar-linked mobile at UIDAI before re-attempting GeM registration |
| “UAM not validated” error | Using old UAM number instead of Udyam Registration Number | Click the MSME checkbox, enter Udyam number and the Aadhaar/mobile linked to Udyam registration |
| PAN validation failure after Aadhaar update | Aadhaar update triggers mandatory PAN re-verification | After updating Aadhaar in GeM profile, re-verify PAN under Key Person validation |
| Address mismatch error | Office address in GeM profile does not match ITR-filed address | Update the address in your GeM profile to exactly match the address in your most recent Income Tax Return |
Change 5: BIS Certification — Active Enforcement, Not Just Policy
GeM has significantly strengthened enforcement of BIS and IS certification requirements across product categories where such certifications are mandatory under Indian standards law. This was always a rule — but enforcement was inconsistent and listings in violation often remained active for months.
In 2026, that has changed. Sellers listing products in mandatory-certification categories without a valid, current BIS certificate now face immediate listing removal and potential account suspension for repeated violations. The AI-driven verification system can flag certification mismatches automatically, without manual review.
Before listing or renewing any product on GeM, verify whether your product falls under a mandatory BIS certification category at bis.gov.in. If it does, ensure your BIS certificate is valid, uploaded, and clearly linked to the product listing. Lapses in renewal are the most common violation — set a calendar reminder for BIS certificate renewal dates.
BIS Scheme X certification extended to September 1, 2026 under the Omnibus Technical Regulation Order 2024. Sellers who obtained Scheme X certification have until this deadline before mandatory compliance with the full BIS standard is required. If you hold a Scheme X certificate, plan your full BIS certification process now — do not wait until August.
Change 6: New Product and Service Categories
GeM has opened dedicated procurement categories in 2025–2026 for several high-growth sectors. If your business operates in any of these areas, GeM now offers a direct channel to government procurement that previously did not exist in structured form.
EV Products and Charging Equipment
Dedicated category for electric vehicles, charging stations, EV components, and related infrastructure. Central and state government departments are procuring EV fleet vehicles and charging infrastructure at scale. Sellers must upload relevant certifications including AIS (Automotive Industry Standard) compliance where applicable.
Solar Energy Products
Solar panels, inverters, mounting structures, solar water heaters, and solar-powered lighting now have structured categories. MNRE-mandated ALMM compliance is required for solar PV module listings. This category links directly to the large government solar procurement pipeline including SECI, NTPC Green Energy, and state DISCOMs.
Cybersecurity Services
Government departments are mandated to strengthen cyber infrastructure. GeM now carries structured categories for cybersecurity audit services, penetration testing, VAPT, SOC services, and cyber insurance. Service providers must have CERT-In empanelment for certain categories of security audit work.
Drone Services and Components
Drone surveys, agricultural drone services, drone-based inspection, and drone hardware components are now separately categorised. Sellers must hold valid DGCA drone operating permits and drone type certification where required under the Drone Rules 2021.
eWaste V2
The upgraded eWaste V2 category replaces the older eWaste framework with updated certification and verification requirements. All sellers dealing in eWaste collection, refurbishment, or recycling must register under V2 and upload their CPCB authorisation and Extended Producer Responsibility (EPR) compliance certificates.
GeM–ONDC Integration
Through the MSME TEAM Initiative, Udyam-registered Micro and Small Enterprises can now extend their GeM seller profile to ONDC — gaining access to private sector buyers beyond government departments. Registration is free at team.msmemart.com and includes logistics subsidies, digital catalogue creation, and marketing support through Seller Network Participants.
MSME Benefits on GeM in 2026: What Is Available and How to Claim It
The core MSME procurement advantages on GeM are unchanged in 2026 — but accessing them now requires Udyam Registration and, for service providers, completion of the MSE reverification process. Here is what is available and how each benefit works in practice.
| Benefit | What It Means | Condition to Access |
|---|---|---|
| 25% Procurement Reservation | Central government ministries, departments, and CPSEs must source at least 25% of their annual procurement from MSMEs. On GeM, this is enforced by the system — buyers are prompted to comply with MSE preference rules at the point of purchase | Valid Udyam Registration linked to GeM profile |
| L1 + 15% Purchase Preference | If the lowest bidder (L1) is not an MSME and an MSME seller has quoted within L1+15%, the buyer may offer the MSME seller an order at the L1 price. The buyer can split the bid among up to 5 MSE sellers within this margin | Valid Udyam Registration; MSE reverification complete (for service providers) |
| EMD Exemption | Micro and Small Enterprises are exempt from submitting Earnest Money Deposit when participating in GeM bids — reducing working capital requirements for each bid | Valid Udyam Registration linked to GeM profile; DIPP-certified startups also exempt |
| Prior Experience Waiver | MSMEs and DIPP-certified startups can bid on GeM tenders without meeting prior experience or prior turnover criteria — a significant relaxation for newer businesses | Valid Udyam Registration; startup recognition from DIPP for startups |
| GeM Sahay Credit | MSMEs with confirmed government orders on GeM can access invoice-backed credit from banks and NBFCs through the GeM Sahay facility at competitive rates — without waiting for government payment | Active confirmed order on GeM; valid Udyam Registration; linked bank account |
| SC/ST MSME Preference | MSEs owned by SC/ST entrepreneurs get an additional sub-reservation within the 25% MSME quota — 4% of total government procurement is targeted specifically for SC/ST owned MSEs under the Public Procurement Policy | Valid Udyam Registration with SC/ST ownership clearly recorded; NSSH scheme enrolment recommended |
Your GeM 2026 Compliance Checklist: What to Do Right Now
1
Claim Your Caution Money Refund
If you deposited ₹5,000–₹25,000 as caution money, that money is sitting in your account and can be withdrawn today. Log in → Manage Caution Money → Withdraw. Call 1800 419 3436 if the option is not visible.
2
Complete MSE Reverification
If you are an MSE service provider who bid in any service after 3 February 2026, reverify your MSE status immediately — before your next bid. Seller Profile → MSME Details → Verify with current Udyam number.
3
Update Udyam in Your GeM Profile
If your GeM profile still shows a UAM number, update it to your Udyam Registration Number at udyamregistration.gov.in. UAM is no longer accepted for MSME benefit claims. Do the annual Udyam update if it is pending.
4
Verify Aadhaar-Mobile Linkage
Before any profile update or new registration, confirm your Aadhaar-linked mobile number is active at uidai.gov.in. If the number is inactive or changed, update it at an Aadhaar Seva Kendra before attempting any GeM verification step.
5
Audit Your BIS Certifications
For every product you have listed on GeM, check whether it falls in a mandatory-certification category at bis.gov.in. Verify that uploaded certificates are current and not approaching renewal. Lapsed certificates are now actively enforced — a delisted product loses bid eligibility immediately.
6
Register in New Categories if Applicable
If you sell EV products, solar energy equipment, cybersecurity services, drones, or eWaste services — check whether a new dedicated category exists for your product on GeM. The new categories have better discovery, better buyer targeting, and sector-specific procurement requirements that favour qualified sellers.
Win More Government Tenders Alongside Your GeM Sales
GeM handles direct purchase and bid orders. But thousands of high-value government tenders — for works, services, and sector-specific procurement — are issued on CPPP, IREPS, NTPC, SECI, and state portals that are not on GeM. TenderKosh aggregates live tenders from 1,000+ government procurement portals so you never miss an opportunity that sits outside GeM.
Browse Live Tenders View Plans Why TenderKoshFrequently Asked Questions
Has GeM portal removed caution money in 2026?
Yes. GeM officially discontinued the mandatory Caution Money Deposit requirement for all sellers and service providers under Revenue Policy v1.6. New sellers no longer need to pay any deposit to register and start listing. Existing sellers who have already deposited caution money can withdraw the full amount through their GeM seller dashboard under the Manage Caution Money section. For support, call the GeM helpline at 1800 419 3436 or raise a portal support ticket.
What is MSE reverification on GeM and is it mandatory?
MSE reverification is a mandatory process for all Micro and Small Enterprise service providers on GeM who participated in any service bid after 3rd February 2026. GeM issued an advisory requiring these sellers to update or reverify their MSE status in their GeM profile. Failure to complete reverification results in loss of MSME benefits including purchase preference, EMD exemption, and the L1+15% price matching advantage — even if your Udyam registration is current and valid.
Is Udyam Registration mandatory to sell on GeM in 2026?
Udyam Registration is not technically mandatory for basic GeM registration, but it is effectively mandatory for competitive participation as an MSME. Without it, sellers cannot access the EMD waiver, the 25% procurement reservation, the L1+15% price matching privilege, the prior experience waiver, or GeM Sahay credit. Competing on GeM without Udyam means competing at a significant disadvantage against Udyam-registered sellers in the same category. Register at udyamregistration.gov.in before attempting GeM registration.
What are the new product categories added on GeM in 2026?
Significant new categories active in 2025–2026 include EV products and charging equipment, solar energy products and components, cybersecurity services, drone services and components, and eWaste under a new V2 category framework. Sellers in these sectors must register under the correct new category and upload all required certifications — sector-specific compliance documents (such as ALMM for solar panels or DGCA permits for drones) are required before listing.
What is the BIS certification enforcement change on GeM in 2026?
GeM has significantly tightened enforcement of BIS and IS certification requirements for product categories where such certifications are mandatory. Sellers listing products without valid BIS certificates in mandatory-certification categories now face immediate listing removal and potential account suspension for repeated violations. This enforcement is now partially automated through AI-driven verification. Verify whether your category requires BIS certification at bis.gov.in and ensure certificates are current before each listing renewal.
What is the Vendor Assessment Fee on GeM in 2026?
The Vendor Assessment Fee is currently ₹11,200 plus GST — a one-time, non-refundable payment for OEMs and sellers in categories where third-party vendor assessment by a GeM-authorised agency is mandatory. It is separate from the now-discontinued caution money. Not all sellers are required to pay this fee — resellers may only need it if specified under their specific category rules. Check your category requirements on the GeM portal before assuming this fee applies to your registration.
What is the L1 plus 15 percent MSME purchase preference on GeM?
Under the Public Procurement Policy for MSEs Order 2012, if the L1 bidder in a GeM bid is not an MSME and an MSME seller has quoted a price within L1 plus 15 percent of the lowest bid, the government buyer may award the order to the MSME seller at the L1 price. The buyer can split the bid among up to 5 MSE sellers within this margin. This is one of the most commercially significant MSME-exclusive benefits on GeM and is available only to Udyam-registered sellers with valid MSE status on their profile.
What is the ONDC integration with GeM and how does it benefit MSME sellers?
GeM has announced integration with ONDC — the Open Network for Digital Commerce. Through the MSME TEAM Initiative, Udyam-registered Micro and Small Enterprises can get onboarded onto ONDC at zero cost, gaining access to private and commercial buyers beyond government departments. Benefits include free digital catalogue creation, logistics subsidies, account management support, and digital marketing through Seller Network Participants. Enrol at team.msmemart.com using your Udyam Registration Number.
What is the eWaste V2 category on GeM?
GeM launched a new eWaste V2 category as an upgrade to the previous eWaste framework, with updated certification requirements aligned to current CPCB norms and Extended Producer Responsibility regulations. All existing and new sellers dealing in eWaste collection, refurbishment, or recycling must register under the V2 category and upload required certificates including CPCB authorisation. V1 registrations do not carry over automatically — failure to reregister under V2 disrupts participation in eWaste-related bids.
How do I claim my caution money refund from GeM?
Log into your GeM seller account at gem.gov.in. Navigate to the Manage Caution Money section in your seller dashboard. Initiate a withdrawal request to your linked bank account. Processing typically takes a few working days. If the option is not visible or the withdrawal fails, contact the GeM helpline at 1800 419 3436 or 1800 102 3436, or raise a support ticket through the GeM portal’s help section.
Related Guides
- MSME Benefits in Government Tenders: 9 Provisions Every Small Business Must Know
- Technical Bid vs Financial Bid: Difference, Process and Examples
- Government Tender Corrigenda: How to Track Amendments Before They Cost You the Bid
- What is BOQ in Tenders? Format, Pricing and Mistakes to Avoid
Official References
- Government e-Marketplace (GeM) — Official portal for seller registration and procurement
- GeM Latest Updates — Official policy advisories and category announcements
- Udyam Registration Portal — Register or update your Micro or Small Enterprise
- Bureau of Indian Standards (BIS) — Check mandatory certification requirements by product category
- UIDAI — Verify and update Aadhaar-mobile linkage before GeM registration
- MSME TEAM Initiative — Free ONDC onboarding for Udyam-registered MSEs
- Ministry of MSME — Public Procurement Policy for MSEs Order 2018