GeM is a platform for doing business with the government
The government requires many types of goods and services in the country. In order for the common man and small businessmen to easily deliver their goods and services to the government, a portal like Government e-Marketplace (GeM) has also been created. Now doing business on this portal will be very easy because the government has reduced a huge charge related to it. Read this news…
Online public procurement platform GeM has achieved a significant reduction in transaction fees charged to sellers and service providers on the portal, the agency said citing a senior official.
Now transaction fee up to Rs 10 lakh will be waived
Ajit B has the additional responsibility of CEO of GeM. Chavan said that this move to reduce transaction fees is a bold decision by the government. This is part of the initiative of the first 100 days of the third term of the central government.
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He said, “In line with the government’s commitment to promote ease of doing business and create a more inclusive economy, GeM recently made a significant reduction in transaction fees charged to sellers and service providers transacting on its platform. GeM has implemented the new portal revenue policy with effect from August 9. In line with this, there will now be zero transaction fee on all orders up to Rs 10 lakh. Earlier, this limit was Rs 5 lakh.
This charge will apply on orders above Rs 10 lakh.
Ajit B. Chavan also said that on orders ranging from Rs 10 lakh to Rs 10 crore, a transaction fee of 0.30 per cent of the total order value will be charged, while earlier it was also 0.45 per cent. He said that a flat charge of Rs 3 lakh will now have to be paid for orders above Rs 10 crore, which is much lower than the earlier charge on transactions up to Rs 72.5 lakh.
The official says that after the new changes, there will be no transaction fee on about 97 per cent of the transactions on the GeM portal. While the remaining order value above Rs 10 lakh will be charged a fee of 0.30 per cent. That too will be up to a maximum of Rs 3 lakh.
He said the purpose of the new transaction fee structure is to benefit small and medium traders. GeM is an integrated digital platform that facilitates procurement of goods and services by various Central Ministries, State Departments, Public Undertakings, Autonomous Bodies, Panchayats and State Cooperative Societies. It was launched in the year 2016.
