MSMEs, that is, Micro, Small, and Medium Enterprises (MSMEs), are the economic spine of our country. But they often face steep competition from big vendors in government procurement. To counter this problem, the GeM portal paves a new path by offering GeM MSME benefits that provide businesses with special services to win government procurement.

If you are an MSME and want to register on GeM, then this is your complete guide, in which we’ll talk about:

  ● What are the benefits available for MSMEs
  ● What does the EMD exemption mean
  ● How you can utilise these benefits to win tenders

What are the GeM MSME benefits?

The aim of GeM MSME benefits is to provide small and medium businesses with more opportunities and a level playing field in the government procurements. The MSME registered on GeM gets:

  ● EMD exemption
  ● Bid price preference
  ● Relaxed eligibility criteria
  ● Easier access to bids
  ● Supportive payment terms

What is EMD Exemption?

EMD stands for earnest money deposit, which is a type of security deposit that bidders have to submit before participating in tenders. But registered MSMEs on GeM have a benefit:

EMD Exemption: which means you don’t have to pay EMD while bidding in government tenders. Its advantages:

  ● Saves ₹10,000 to ₹1 Lakh upfront cost
  ● Small vendors can participate in more bids without tying up capital
  ● The financial risks associated with tenders are minimized

It is important to note that the EMD exemption is only available for MSMEs that have completed UDYAM registration and GeM MSME mapping.

Which MSMEs are eligible for benefits on GeM?

Not all MSME vendors get the same benefits. There are some criteria that MSMEs have to meet to avail these benefits:

  • Your MSME should be registered by the government of India on the UDYAM portal
  • The Seller profile should be active and verified on GeM
  • The GeM account must be tagged MSME (along with Udyam certification upload)

If you follow these steps, then the GeM MSME benefits get unlocked for you.

Required Documents for MSME Tagging on GeM

For MSME tagging on GeM, there are some important documents that you have to upload:

  ● UDYAM Registration Certificate
  ● PAN and GST
  ● Bank Account details
  ● Authorised signatory proof
  ● Compliance documents as per product category

Your profile on GeM will get an MSME badge once these documents are verified.

Also Read: Understanding GeM Bid Types: RA, BoQ, Product Bids, and More

Other Major Advantages of GeM MSME Benefits

  1. Bid Price Preference: As per the government’s policy, if an MSME seller quotes up to 15% higher than the L1 price, they are still given an opportunity if they are willing to supply.
  2. Relaxed Turnover and Experience Requirements: In many tenders, the conditions for turnover and experience are relaxed for MSMEs, which empowers new businesses.
  3. Payment Protection: As per GeM regulations, buyers must process payments to MSME sellers within a period of 10 to 15 days. In case of delay, interest could be levied on the buyer.
  4. GeM SAHAY Loan Access: GeM-registered MSMEs get the service of working capital loans, like the GeM SAHAY scheme provides, without collateral.

Real-Life Example: MSME Success Story

A Jaipur-based handicraft MSME registered on GeM. By availing the benefit of EMD exemption for MSMEs, they participated in 12 tenders. Earlier, due to the EMD requirement, they could participate in only 2 tenders. But, after the exemption, they were able to take part in more tenders and successfully supplied to three government departments. Today, this seller is top-rated on GeM and earns a revenue of 5 lakhs per month. Thanks to GeM MSME benefits.

Step-by-Step: How to Avail GeM MSME Benefits?

  • Step 1: Register on UDYAM
  • Step 2: Complete seller registration on GeM
  • Step 3: Upload the UDYAM certificate on the GeM profile
  • Step 4: Activate the MSME tag
  • Step 5: Search for tenders and choose the filter for EMD exemption
  • Step 6: Bid in tenders

Benefits of GeM Analytics and Visibility for MSME Sellers

GeM not only makes tenders available, but also provides data-driven insights like;

  • Which departments are making the most purchases?
  • In which product category is the highest number of tenders?
  • How many times has your product been searched?
  • Which buyers are visiting your profile?

This visibility and transparency are better than any private marketplace. Based on these numbers, MSMEs can upgrade their product portfolio, add new SKUs and refine bidding strategy. That is why it’s not enough to just be present on GeM; it’s important to stay active and strategic. GeM MSME benefits are only advantageous when you assume bidding as a learning and optimisation journey.

Now MSMEs Can Also Become Trusted Sellers to the Government

The GeM MSME benefit is not just a service; it is an opportunity that every small businessman should understand and utilise. Because of EMD exemption, price preference, and relaxation policies, MSMEs can now compete in big tenders without needing huge capital. Success on GeM is not a monopoly of big vendors anymore. If you haven’t registered for UDYAM yet or activated the MSME tag on GeM, then this is your cue.  And remember, the sooner you start the process, the sooner you can establish your place in this digital bazaar for government procurement.

Bonus tip: With tools like BidAssist, you can receive timely notifications about every new MSME-friendly tender relevant to your products and criteria, so you don’t miss a single opportunity due to timing.

FAQs: Commonly Asked Questions for GeM MSME Benefits

Q1: Is the EMD exemption available in all tenders?
A: No, in some high-value or strategic tenders, EMD could be mandatory, but in most tenders, MSMEs are exempted.

Q2: Are MSME benefits automatically applied?
A: No, you need to register your UDYAM certificate and MSME status in your GeM profile.

Q3: Do SC/ST or women-owned MSMEs get preference?
A: Yes, these types of businesses get special benefits on the GeM portal, like direct procurement and relaxation clauses.