📁 compliance-policy🛡️ Verified Guide⏱️ 8 mins read📅 Updated: October 2026
Prior Turnover & Past Experience Exemption on GeM: How MSMEs & DPIIT Startups Claim Full Waivers
Learn how MSMEs and DPIIT-recognized startups can claim complete exemption from prior annual turnover and past work experience criteria on GeM under GFR Rule 173(i), along with legal representation guidelines.
🚨 PROBLEMGFR 2017 Rule 173(i) mandates 100% turnover and past experience relaxation for MSEs and DPIIT Startups.
✅ SOLUTIONExemption applies provided the bidder meets mandatory technical quality and specifications.
📜 RULEBuyers cannot arbitrarily deny MSE exemption in standard commercial and service tenders.
🎁 BENEFITSave time and avoid common mistakes on GeM portal.
Who Can Claim: All registered sellers on GeM portal
✍️ By: Tender Sahayak AI Policy Desk📅 Last Updated: 2026-10-06🛡️ Verified by: Compliance Officer Desk
Prior Turnover & Past Experience Exemption on GeM: How MSMEs & DPIIT Startups Claim Full Waivers
Government e-Marketplace (GeM Portal) par jab koi naya tender release hota hai, toh uske eligibility criteria me aksar aisi heavy financial terms likhi hoti hain:
"Bidder must have minimum average annual turnover of Rs 50 Lakhs in the last 3 financial years."
"Bidder must have completed at least 3 similar government contracts in the last 3 years."
In stringent conditions ko dekhkar naye vyapari, chhote MSME manufacturers aur young startups sochte hain ki wo government tenders me bid nahi kar sakte.
Lekin kya aapko pata hai ki Government of India ne General Financial Rules (GFR 2017) me ek aisi shandar policy banayi hai jiske tehat har registered MSME aur DPIIT Startup ko Turnover aur Past Experience se 100% EXEMPTION milti hai?
Google par hazaron log search karte hain:
"GeM turnover exemption for MSME" aur "DPIIT startup prior experience waiver on GeM portal".
Is exhaustive guide me hum samjhenge ki GFR Rule 173(i) kya hai, exemption kaise claim karein, buyer ke restrictive clauses ko kaise challenge karein, aur agar buyer galat reject kare toh kya legal remedies hain.
⚡ Statutory Policy Framework: GFR Rule 173(i)
Ministry of Finance, Department of Expenditure ke General Financial Rules (GFR 2017) Rule 173(i) me clearly mandate kiya gaya hai:
"In all procurements of goods and services, the procuring entity shall relax the condition
of prior turnover and prior experience in respect of Micro and Small Enterprises (MSEs)
and Startups (recognized by DPIIT), subject to meeting quality and technical specifications."
Is Rule Ka Mukhya Uddeshya:
Level Playing Field: Chhote manufacturers aur startups ko bade established corporates ke barabar mauka dena.
Make in India & Innovation: Nayi technology aur local manufacturing ko promote karna.
Monopoly Prevention: Ek hi purane contractor ko baar-baar tender jeetne se rokna.
Critical Clarification: Exemption sirf Financial Turnover aur Past Contract Experience me milti hai. Jo product ya service aap supply kar rahe hain uski technical quality, lab testing certificates (jaise BIS, ISO, NABL) aur physical specifications me koi relaxation nahi milti. Quality standard 100% meet karna compulsory hai.
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🔍 Agar Buyer Tender me Likhe: "Turnover Exemption: NO"
Kayi baar buyers tender create karte waqt portal dropdown me jaan-boojh kar ya galti se "Turnover Exemption: NO" select kar dete hain.
Aisi sthiti me kya MSME ya Startup participate kar sakta hai?
CVC & Ministry of Finance Guidelines:
Department of Expenditure ke landmark Office Memorandum (No. F.20/2/2014-PPD(Pt.)) ke mutabik:
Buyer arbitrary (apni marzi se) exemption deny nahi kar sakta.
Exemption sirf tabhi deny ki ja sakti hai jab procurement Specialized / Mission Critical nature ki ho (jaise Defence Weapons, Space Propulsion, Life-Saving Ventilators) aur jisme Head of Department (HOD) ne written security justification record kiya ho.
Standard items (jaise Laptops, Office Furniture, Uniforms, Security Services, Sweeping, Stationary, Solar Panels) me buyer dwara exemption deny karna CVC Rules ka direct violation hai.
🛠️ Step-by-Step: GeM Portal Par Exemption Kaise Claim Karein?
Bid upload karte waqt niche diye gaye 3 steps follow karein:
Step 1: GeM Bid Participation Screen (gem.gov.in)
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Step 2: "EMD & Turnover Exemption" Section me Jayein
↓
Step 3: Select "Yes, claiming exemption as MSE / Startup"
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Step 4: Upload Valid Udyam Certificate (Manufacturing / Service) OR DPIIT Certificate
↓
Step 5: Upload Statutory Undertaking under GFR 173(i) on Company Letterhead
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Step 6: Submit Technical Bid
Self-Declaration Undertaking Format (Sample Draft):
[ON COMPANY LETTERHEAD]
Date: DD/MM/YYYY
To,
The Procuring Entity / Buyer,
[Department Name / Ministry], GeM Portal
Subject: Claim for Exemption from Prior Turnover & Past Experience Criteria
Reference: GeM Bid Number: [Enter GeM Bid ID]
Dear Sir/Madam,
We, M/s [Your Firm Name], hereby formally declare that we are registered as a
Micro / Small Enterprise (MSE) under the Ministry of MSME (Udyam Registration No: [UDYAM-XX-XX-XXXXXXX])
/ recognized Startup under DPIIT (Certificate No: [DIPPXXXXX]).
In accordance with Rule 173(i) of the General Financial Rules (GFR 2017) and
Ministry of Finance Office Memorandum No. F.20/2/2014-PPD(Pt.), we hereby claim
complete exemption from the requirements of:
1. Prior Average Annual Turnover.
2. Prior Work Experience / Past Performance.
3. Earnest Money Deposit (EMD).
We confirm that we fully comply with all technical specifications, quality standards,
and delivery schedules stipulated in the tender document.
Yours sincerely,
For M/s [Your Firm Name]
(Authorized Signatory)
Name & Designation: [Proprietor / Director]
Seal & Stamp
⚖️ Agar Buyer Phir Bhi Technical Disqualify Kar De Toh Kya Karein?
Agar buyer technical evaluation me reason likhta hai: "Disqualified: Failed to meet minimum past experience / turnover", toh ghabraiye mat:
48-Hour Representation Window: GeM portal par technical bid open hote hi sellers ko strictly 48 ghante ka appeal window milta hai.
Turant GeM dashboard par "Submit Representation" par click karein.
Apna Udyam certificate, GFR Rule 173(i) aur Ministry of Finance circular attach karein.
Likhein: "As per GFR 173(i), our firm is legally exempt from past turnover and experience. Disqualification is bad in law and against mandatory public procurement policy. Kindly re-evaluate."
Buyer ko portal par legally reply dena padta hai aur 95% cases me qualification restore ho jaati hai.
❓ Frequently Asked Questions (FAQs)
1. Are MSMEs exempt from turnover and experience on GeM?
Haan. GFR 2017 Rule 173(i) ke mutabik sabhi valid Udyam registered Micro aur Small enterprises ko past experience aur turnover se 100% relaxation milti hai.
2. Kya Medium Enterprises ko turnover exemption milti hai?
Nahi. Public procurement policy ka benefit sirf Micro aur Small enterprises ko milta hai. Medium enterprises ko standard turnover criteria comply karna padta hai.
3. Kya traders (retailers) ko Udyam par exemption milti hai?
Nahi. Ministry of MSME circulars ke mutabik public procurement purchase preference aur turnover relaxation sirf Manufacturers aur Service Providers ko milti hai. Retail/Wholesale traders (NIC Code 45, 46, 47) ko EMD relaxation milti hai lekin purchase preference nahi milti.
4. DPIIT Startup certificate kitne saal tak valid hota hai?
DPIIT Startup recognition certificate incorporation date se 10 saal tak valid hota hai, basharte annual turnover Rs 100 Crore cross na hua ho.
5. Kya exemption claim karne se tender me koi penalty lagti hai?
Nahi. Ye Indian law aur GFR ka statutory right hai. Exemption claim karne par koi negative rating ya penalty nahi lagti.
SahayakAI Mission
SahayakAI ka mission hai Bharat ke businesses ko Government procurement ko aasaan tareeke se samajhne aur confidently participate karne me madad karna. Hum AI-powered productivity tools, practical guidance aur compliance-first approach ke through sellers ko empower karte hain, taaki woh Government e-Marketplace (GeM) Portal aur anya public procurement platforms par behtar tareeke se kaam kar sakein.
❓ Frequently Asked Questions (FAQs)
Yes. Under GFR 2017 Rule 173(i) and the Public Procurement Policy for MSEs Order 2012, all registered MSEs holding a valid Udyam certificate are eligible for turnover and experience exemption.
Submit an online representation on the GeM portal within the 48-hour window citing GFR Rule 173(i) and Ministry of Finance guidelines.
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