Summary:

The Government e-Marketplace (GeM) has drastically lowered transaction fees for sellers and service providers, according to a senior official. Effective August 9, the new policy removes costs for orders up to US$ 11,978 (Rs. 10 lakh), up from US$ 5,989 (Rs. 5 lakh). Fees are reduced to 0.30% for orders up to US$ 1.2 million, with a fixed price for larger transactions to promote an inclusive economy.

Nearly 97% of GeM transactions will now be free of charge, with the remaining transactions subject to a nominal fee. This restructuring facilitates easier business operations on GeM and helps the government achieve its goal of reducing transaction costs. The modified fee system democratizes access to public procurement, supporting micro and small enterprises (MSEs) and encouraging innovation. Launched in 2016, GeM streamlines effective procurement for numerous government organizations.

Source: IBEF

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