Government e-marketplace, GeM, has reduced the transaction charges levied on sellers and service providers to foster ease of doing business and build a more inclusive economy. All orders valued up to ten lakh rupees will now attract zero transaction charges, as compared to the earlier order value ceiling of five lakh rupees.

Orders above ten lakh rupees and up to ten crore rupees will be levied transaction charges worth 0.30 per cent of the total order value. While orders above ten crore rupees will now have to pay a flat fee of three lakh rupees, a massive reduction from the transaction charges previously capped at over 72 lakh rupees. The Commerce and Industry Ministry said this bold move was part of the government’s 100-day initiative.

Talking to reporters in New Delhi, Additional CEO GeM, Ajit Chavan, said that nearly 97 percent of the transactions on GeM will be attracting zero transaction charges. He said GeM has reduced its transaction fee by almost 33 per cent to 96 per cent, which is expected to benefit GeM sellers and service providers to become more competitive. Mr Chavan said the decision will benefit the MSMEs sector, which often faces challenges navigating cumbersome financial and operational barriers.