Government-e-Marketplace reduces transaction charges for sellers to enhance ease of doing business

Government e-Marketplace cuts transaction fees by nearly 33%

In a move aligned with the Indian government’s commitment to fostering an inclusive economy and improving the ease of doing business, the Government-e-Marketplace (GeM) has announced a substantial reduction in transaction charges for sellers and service providers on its platform.

Transaction fees have been cut by nearly 33%, benefiting GeM sellers and making them more competitive. Under the new policy, orders valued up to Rs.10 lakh will incur zero transaction charges, an increase from the previous threshold of Rs.5 lakh.

For orders exceeding Rs.10 lakh but not surpassing Rs.10 crore, the transaction charge will now be 0.30% of the total order value, down from the earlier rate of 0.45%. Orders above Rs.10 crore will face a flat fee of Rs.3 lakh, significantly reduced from the previous cap of Rs.72.5 lakh.

Approximately 97% of transactions on GeM are expected to qualify for zero transaction charges, while the remaining will incur a nominal fee based on the new structure. This initiative has been described by the Ministry of Commerce and Industry as a “watershed moment” in enhancing the ease of doing business on the GeM platform.

The fiscal year 2024-25 is also proving advantageous for the services sector, which has outpaced product gross merchandise value (GMV) significantly. As of August 31, service GMV reached ₹1.39 lakh crore, accounting for about 65% of the total merchandise value of Rs.2.15 lakh crore for the same period. This surge has been bolstered by over 325 service categories available on the platform, along with numerous high-value service bids awarded.

GeM serves as a unified digital platform that streamlines the end-to-end procurement of goods and services for various government entities, including central ministries, state departments, public sector enterprises, autonomous bodies, and cooperatives. The recent changes are set to further facilitate and optimize procurement processes for all stakeholders involved.

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