In a significant step towards boosting ease of doing business, the Government e-Marketplace (GeM) has announced a major reduction in transaction charges as part of its 100-day governance initiative. The revised fee structure, effective from 9th August 2024, aligns with the government’s efforts to create a more inclusive economy by making public procurement more accessible.

Key highlights of the new policy include

• Zero transaction charges for orders up to ₹10 Lakh, doubling the previous ₹5 Lakh ceiling.
• Orders between ₹10 Lakh and ₹10 Crore will now incur a reduced fee of 0.30% of the total order value, down from 0.45%.
• A flat ₹3 Lakh fee will apply to orders exceeding ₹10 Crore, a steep reduction from the earlier cap of ₹72.5 Lakh.
• This bold reform means that nearly 97% of transactions on the platform will incur no fees, with the rest subject to a nominal charge. By slashing fees by 33% to 96%, GeM aims to empower Sellers and Service Providers and make them more competitive.

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The new structure is expected to particularly benefit Micro and Small Enterprises (MSEs) by removing financial barriers and levelling the playing field in public procurement. Additionally, GeM has seen a rapid surge in service procurement, with Service GMV reaching ₹1.39 Lakh Crore by 31st August 2024, making up 65% of total Merchandise Value. With 325+ service categories, GeM continues to provide government buyers with a user-friendly interface and transparent e-bidding processes, ensuring fair competition.

#EaseOfDoingBusiness # #InclusiveEconomy #PublicProcurement #DigitalIndia

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