New Delhi
The Government e Marketplace (GeM) has announced a significant reduction in transaction charges for sellers and service providers. Under the new policy, all orders up to Rs 10 lakh will now incur zero transaction fees, doubling the previous limit of Rs 5 lakh. For orders between Rs 10 lakh and Rs 10 crore, the transaction fee has been reduced to 0.30 percent, down from 0.45 percent. Orders exceeding Rs 10 crore will now be charged a flat fee of Rs 3 lakh, significantly lower than the previous cap of Rs 72.5 lakh.
These changes mean approximately 97 percent of transactions on GeM will no longer have any transaction charges. For orders above Rs 10 lakh, a nominal fee of 0.30 percent will apply, capped at Rs 3 lakh, regardless of the order size. The fee reduction, ranging from 33 to 96 percent, is expected to enhance competitiveness among sellers, particularly benefiting Micro and Small Enterprises (MSEs).
The revised fee structure aligns with the government’s efforts to lower transaction costs and promote fair competition in public procurement. This move is also aimed at supporting smaller businesses, enabling them to participate more effectively in procurement processes. GeM’s platform has also seen significant growth in the services sector, with services now accounting for 65 percent of its total Gross Merchandise Value (GMV) as of August 31.
