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GeM Cuts Transaction Fees to 0.30%, Raises Fee-Free Threshold to ₹10 Lakh

Government news – VoiceOfGP

Government e Marketplace (GeM) has reduced transaction charges for sellers from 0.50% to 0.30% of the order value, the Ministry of Commerce & Industry announced. Orders valued up to ₹10 lakh are now fully exempt from transaction charges, up from the earlier threshold of ₹5 lakh, leaving nearly 97% of orders on the portal free of transaction fees.

For orders exceeding ₹10 crore, transaction charges are now capped at ₹3 lakh, compared with the earlier ceiling of ₹72.50 lakh. In addition, vendor assessment fees for Original Equipment Manufacturers (OEMs) have been reduced by 66% to 92% since January 2024, and the mandatory Caution Money deposit for seller onboarding was eliminated in July 2025.

GeM has also integrated with all five Trade Receivables Discounting System (TReDS) platforms. Combined with GeM SAHAY, this integration enables collateral-free financing against purchase orders to assist micro and small enterprises with working capital needs.

What it means

  • Sellers on GeM pay a reduced transaction fee of 0.30%, with orders up to ₹10 lakh completely exempt and fees on large orders capped at ₹3 lakh.
  • New sellers are no longer required to submit a caution money deposit during the onboarding process.
  • Suppliers can access invoice discounting and collateral-free financing directly through integration with all five TReDS platforms.

Source

Press Information Bureau, Government of India, “GeM Samvad 2026 Highlights Reforms to Improve Public Procurement Access and Affordability for MSEs”. Read the original release.

Summary of an official release for general information only. Not investment advice. Read the original source before acting on any information.

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