Empowering MSEs: Zero Transaction Charges up to 10₹ Lakh on GeM
Micro and Small Enterprises (MSEs) are the backbone of India’s economic growth. They generate employment, foster innovation and strengthen competition across markets. Recognising their vital role, Government e Marketplace (GeM) has introduced a progressive transaction fee structure that significantly reduces the cost of participation for small sellers.
The introduction of zero transaction charges for orders up to 10₹ lakh marks a decisive step towards making public procurement more inclusive, accessible and growth-oriented for MSEs and service providers across the country.
Zero Transaction Charges: A Major Boost for Small Sellers
Under the revised policy, GeM has eliminated transaction charges on orders up to 10₹ lakh. This reform eases cost pressures and enhances profitability for small sellers.
Approximately 97% of orders on GeM are exempt from transaction charges, making the platform significantly more attractive for both new and existing MSEs. By removing cost barriers, GeM is enabling wider participation in government procurement without additional platform-related deductions.
This policy directly reflects the Government’s commitment to strengthening the MSE ecosystem through supportive digital governance measures.
A Pro-Seller Framework for MSEs
GeM’s transaction charges form part of a broader pro-seller framework designed to enhance competitiveness for Micro and Small Enterprises. The revenue policy balances operational sustainability with inclusivity, ensuring that smaller enterprises are not economically disadvantaged.
For early-stage and scaling businesses, cost efficiency is critical. The elimination of charges for smaller orders allows MSEs to retain a larger share of their revenue, improving sustainability and enabling reinvestment in quality, compliance and expansion.
How Zero Transaction Charges Strengthen MSE Participation
1. Greater Access to Public Procurement
Zero transaction charges reduce hesitation among small sellers considering entry into government supply chains. The policy makes GeM economically viable for micro and small enterprises seeking institutional buyers.
2. Improved Cash Flow and Profit Retention
Liquidity is often a key challenge for small businesses. With no transaction charges up to 10₹ lakh, MSEs retain higher margins, supporting working capital needs and operational continuity.
3. Accelerated Digital Integration
By lowering cost barriers, GeM encourages more MSEs to adopt digital procurement channels. This integration strengthens formalisation, enhances visibility and expands market reach within government procurement.
Transparency and Predictability Through Revenue Policy
GeM’s revenue policy clearly outlines transaction charges structures and exemptions, ensuring transparency and predictability for sellers. This clarity enables informed pricing decisions and fosters confidence in platform participation.
The approach reinforces GeM’s identity as a structured, rule-based digital marketplace committed to fairness and accountability.
Aligning with the Vision of Inclusive Growth
This transaction charge initiative aligns with the Government’s broader vision of integrating MSEs into digital public infrastructure. By reducing participation costs, GeM strengthens economic resilience among small enterprises and promotes equitable growth within public procurement.
This measure is particularly impactful in sectors where MSEs dominate, ensuring that competition remains broad-based and opportunity remains accessible.
What This Means for MSEs and Service Providers
For small sellers, this policy represents more than cost relief, it signals institutional support. Reduced transaction charges mean easier entry, improved margins and sustained engagement in government markets.
GeM continues to evolve beyond a procurement platform. It serves as an enabler of growth, supporting smaller enterprises in building credibility, scale and long-term participation in public procurement.
Key Benefits of Zero Transaction Charges up to 10₹ Lakh
Reduces platform costs for MSEs and small sellers
Enhances cash flow and profit retention
Encourages broader digital adoption
Expands access to government buyers
Strengthens competitive participation
Advances inclusive economic growth
Conclusion: Advancing a Fair and Inclusive Marketplace
Zero transaction charge policy for orders up to 10₹ lakh reflects GeM’s commitment to building a transparent, competitive and inclusive procurement ecosystem. By removing financial barriers for the majority of orders, GeM strengthens MSE participation and reinforces its role as a responsible digital public platform. Through calibrated reforms and pro-seller policies, GeM continues to ensure that India’s small enterprises not only participate, but also thrive in the nation’s public procurement landscape.
References:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2057276®=3&lang=2
https://www.facebook.com/govGeM/posts/didyouknow-97-of-all-orders-on-gem-are-exemptfrom-transaction-fees-giving-small/1251508370348763/
https://www.financialexpress.com/business/sme/gem-revised-transaction-charges-0-percent-for-orders-up-to-rs-10-lakh-check-full-list-for-sellers/3615628/ https://assets-bg.gem.gov.in/resources/upload/shared_doc/revenue_policyv1_1723124880.pdf
https://www.newsonair.gov.in/gem-cuts-transaction-charges-levied-on-sellers-serviceproviders-for-public-procurement/