Government eMarketplace (GeM), the digital public procurement marketplace, has reduced the transaction charges levied on sellers in order to particularly benefit micro and small enterprise (MSE) sellers in the GeM seller base.
In a revenue policy document on August 9, 2024, the portal announced zero per cent transaction charges for all orders valued up to Rs 10 lakh from the earlier limit of Rs 5 lakh. The revised charges have been effective from August 9.
For orders above Rs 10 lakh and up to Rs 10 crore, the portal reduced the transaction charges to 0.30 per cent of the order value from 0.45 per cent earlier. For orders above Rs 10 crore, the transaction charges has been capped at maximum Rs 3 lakh, reducing it by 95 per cent from earlier capping at Rs 72.5 lakh.
The announcement on revised transaction charges was made in a press conference on July 11.
“This transformative change is envisioned to enhance ease of doing business on the platform, empowering small-scale sellers and service providers to effortlessly participate and secure government tenders,” GeM said in a post on X on Thursday.
The platform had recorded 2x growth in GMV in FY24 to Rs 4.03 lakh crore with over 62 lakh orders processed vis-a-vis Rs 2.01 lakh crore in FY23, on the back of growth in goods and services procured by various government departments and enterprises.
Last month, GeM said it has crossed gross merchandise value (GMV) or order value of Rs 10 lakh crore since its inception in August 2016.