This paper presents the concept of spatial modulation (SM) scheme for massive multiuser MIMO (MU-MIMO) system. We consider a MU-MIMO system whereKusers, each equipped with multiple antennas, are jointly serviced by a multiantenna base station transmitter (BSTx) using appropriate precoding scheme at the BSTx. The main idea introduced here is the utilization of the user’s subchannel index corresponding to the precoding matrix used at the BSTx, to convey extra useful information. This idea has not been explored, and it provides significant throughput enhancements in a multiuser system with large number of users. We examine the performance of the proposed scheme by numerical simulations. The results show that as the number of users and the receiving antennas for each user increase, the overall system throughput gets better, albeit at the cost of some degradation in the BER performance due to interantenna interference (IAI) experienced at the receiver. We then explore zero-padding approach that helps to remove these IAI, in order to alleviate the BER degradations.