09 Dec 2019Posted By: Mudit Handa

Government e-Marketplace Sellers have to pay Transaction Charges

The Government has recently notified that all the sellers having GeM registration have to pay the GeM transaction charges applicable on the order placed, within 10 days from the date of placement of the contract.

The Government e-Marketplace, more commonly known as GeM is undoubtedly a very user-friendly and transparent platform set up for enabling the Medium & small enterprises (MSEs) and manufacturers of India.

A small scale trader or manufacturer can easily access the Government e-Marketplace by easily obtaining the GeM registration in the name of his business entity. Thereafter, he can get easy access to the extensive platform for dealing in the products & services with distinguished buyers from the Government department or the PSUs, where there is an urgent requirement of such goods and services.


1. What are the GeM transaction charges?

The GeM transaction charges are the charges that are applicable on the order placed to the GeM registered sellers and have to be paid by them. 

The buying & selling of the goods and services generally takes place on the GeM portal through a process called public procurement. In this process, the central, state governments and PSUs place the tender to the buy goods & services from the private traders and manufacturers. In common language, this is called government tender. The government levies a certain charge out of the transaction value, known as transaction charges.

2. What has Government said regarding transaction charges?

The government has recently given a notification stating that all the sellers having GeM registration have to pay the GeM transaction charges applicable on the order placed to them, within 10 days from the date of placement of the contract.

With respect to all the contracts placed on the GeM portal after 15th December 2019, if the seller fails to pay the transaction charges within 10 days from the date of placement of the contract, his contract shall be canceled and the seller shall be liable for penal action. The notification is shown as below-

GeM transaction charges

3. How much transaction charge is levied on sellers?

GeM provides a user-friendly platform for both buyers & sellers to carry out the transactions. Hence the buyers & sellers having GeM registration are charged a very nominal percentage of the transaction value of their order as transaction fee. 

  • Besides, the GeM department charges a transaction fee only above a certain threshold limit of the transaction value.
  • Along these lines, if the transaction value of the order is above ₹30 lacs, the Sellers are charged 0.5% of the total transaction value.
  • This has been designed in accordance with the proviso that the user's willingness to pay can be higher in case of transactions of the bigger value. This also ensures a higher possibility of implementation and greater revenue realization for GeM.

The sellers are advised to timely pay the transaction fees in order to avoid cancellation of their orders and other penal actions.

If you need any sort of assistance regarding the complete process of GeM registration, please feel free to contact our business advisors at 8881-069-069.

Download E-Startup Mobile App and Never miss the latest updates relating to your business.

Give a Reply

Fill up the form

E-startupIndia Mobile App


Download our free Android App and get realtime update on your order status.
Easily connect with our professionals handling your order over chat & mobile.
Never miss business compliances due date with advance notifications.

Get E-startupIndia in your mobile

Why Choose Us

e-startupindia member of GOOGLE

Serving business owners with an Average 4.8+ Google Rating.

e-startupindia certified #AxixBank

Trusted by Axis bank to cater its clients all licensing & compliance needs.

e-startupindia NG Alliance Partner

Providing lending solutions for business needs with NeoGrowth.

e-startupindia Google Partner

Open Neo bank account worldwide & provides cross-border remittance solutions.

e-startupindia member of CII

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

e-startupindia certified #Etstartupindia

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

e-startupindia Google Partner

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

Popular Services

Private Limited Company | Public Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Sole Proprietorship Firm | Section 8 Company Registration | USA Company Registration | UK Company Registration | UAE Company Registration | Singapore Company Registration | Company Registration Hong Kong | Import Export Code | IEC Modification | AD Code Registration | Spice Board Registration | US FDA Certification | ISO 9001 2015 | ISO 14001 EMS | ISO 22000 FSMS | ISO 27001 ISMS | ISO 50001 Energy Management | ISO 45001 | ISO Surveillance | ISO Certification | MSME Registration | FSSAI Registration | Shop Establishment Registration | Barcode Registration | Coffee Board Registration | Startup India Certificate | ZED Certification | Trademark | Trademark Objection Reply | Trademark Opposition | Trademark Hearing | Trademark Formality Check Fail | Website Development | Patent | Copyright | Design Registration | Business Name Suggestion | Logo Designing | Trademark Assignment Service | GST Registration | GST Modification | GST Cancellation | GST Return Filing | GST Invoice Software | UIN Registration | Income Tax Return | Income Tax Notice | Income Tax Refund | Income Tax Assessment | TDS Return Filing | Form 15CA / CB | Professional Tax Registration | 12A and 80G Registration | FCRA Registration | CSR Registration | Project Report | Pitch Deck | Seed Fund Startup India | Accounting for Ecommerce | Virtual cfo services in india | Bookkeeping & Accounting | Private limited Company Annual Compliance | Form INC-22A | Form 15CA / CB | Company Strike Off | Commencement of Business | Fssai annual return | Online CA Consultancy | Income Tax Return Filling | LLP Annual Compliances | Form DIR-3 KYC | Virtual Office for Company Registration |


  • e-startupindia South Asia's Leading Multimedia News Agency
  • Business Standard
  • e-startupindia Outlook
  • e-startupindia Htmedia
  • e-startupindia Yahoo News
  • e-startupindia New Delhi Times
  • e-startupindia India.com
  • e-startupindia IBTN9