GeM Cuts Transaction Charges to 0.30%, Raises Exemption Threshold to ₹10 Lakh for MSEs
The Government e Marketplace (GeM) has reduced transaction charges from 0.50% to 0.30% of the order value, raised the threshold for exemption from ₹5 lakh to ₹10 lakh and capped charges for orders...
The Government e Marketplace (GeM) has reduced transaction charges from 0.50% to 0.30% of the order value, raised the threshold for exemption from ₹5 lakh to ₹10 lakh and capped charges for orders above ₹10 crore at ₹3 lakh, down from the earlier maximum of ₹72.50 lakh, to make public procurement more accessible and affordable for Micro and Small Enterprises (MSEs).
The reforms were highlighted at an event organised by GeM in collaboration with Laghu Udyog Bharati (LUB) as part of GeM Samvad 2026, according to a press release issued by the Ministry of Commerce and Industry.
Nearly 97% of orders placed on GeM attract no transaction charges. The requirement for a Caution Money deposit during onboarding was also discontinued in July 2025. In addition, vendor assessment charges applicable to Original Equipment Manufacturers (OEMs) have been reduced since January 2024.
GeM–LUB Partnership Expands Outreach to MSMEs
Formalised through a Memorandum of Understanding (MoU) in 2024, the GeM–LUB partnership has facilitated 108 virtual conferences, apart from numerous physical events across India, to build awareness, support digital onboarding and help MSMEs navigate the platform and access government procurement opportunities.
In his address, GeM CEO Mihir Kumar said the reforms undertaken by GeM had helped MSMEs by reducing participation costs, simplifying processes and improving access to finance. These measures have enabled them to participate more confidently in government procurement and contribute to the vision of Atmanirbhar Bharat and Viksit Bharat 2047.
He added that GeM endeavours to build a Trusted Seller ecosystem in which business opportunities are completely democratised in digital format.
Integration with TReDS Exchanges to Support MSME Financing
Additional CEO of GeM Ajit B. Chavan highlighted that, in line with the Union Budget 2026–27 announcement, GeM has integrated with all five Trade Receivables Discounting System (TReDS) exchanges.
He said this integration, along with GeM SAHAY’s collateral-free lending against purchase orders on GeM, would go a long way towards addressing the working capital and timely payment challenges faced by MSMEs.
LUB Plans to Deepen Collaboration with GeM
LUB President Madhusudan Dadu, National General Secretary Om Prakash Gupta, National Treasurer and GeM Nodal Janak Bhatia, and GeM Additional CEO Ajit B. Chavan participated in the deliberations and interacted with MSMEs attending the event.
Dadu and Gupta outlined LUB’s plans to deepen collaboration with GeM and expand outreach to MSMEs through LUB’s pan-India network of offices, regular weekly GeM–LUB virtual conferences and dedicated facilitation counters at various offices, staffed by trained volunteers.
-PIB Inputs
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