This guide covers everything you need to know about gem caution money: what it is, how much & how to pay (2026) — with practical, actionable information tailored for Indian MSMEs and small businesses.
Caution Money Slabs 2026
| Annual Turnover | Caution Money | Who This Applies To |
|---|---|---|
| Up to ₹1 Crore | ₹5,000 | Most small MSMEs and new businesses |
| ₹1 Crore to ₹10 Crores | ₹10,000 | Growing MSMEs, medium businesses |
| Above ₹10 Crores | ₹25,000 | Large businesses, established manufacturers |
Need Expert Help?
Our GeM consultants handle everything — from registration to winning your first order. Book a free consultation today.
Frequently Asked Questions
1 Is caution money on GeM refundable?
Yes, caution money is fully refundable. It is held as a security deposit and returned to your bank account when you permanently deregister your GeM seller account. There are no deductions unless GeM penalizes you for a specific violation, which is rare and only applies to serious platform misuse.
2 Can I list products on GeM without paying caution money?
No. Payment of caution money is mandatory before you can list any product on GeM portal or participate in any bid or tender. Your account is created upon registration but remains inactive for selling until caution money is deposited.
3 How long does caution money take to reflect on GeM?
For Axis Bank online payment — 15-30 minutes. For NEFT or RTGS from other banks — 24-48 working hours. For HDFC or ICICI — similar to NEFT timing. Keep your UTR number handy in case you need to raise a support ticket if the amount does not reflect.
4 Can I get a refund of caution money if I stop selling on GeM?
Yes. If you decide to permanently deregister from GeM, you can apply for caution money refund through the portal. The refund is processed to your registered bank account within 15-30 working days after deregistration is completed. There is no partial refund option — it is all-or-nothing.