GeM cuts transaction fee for MSMEs, no fee on orders up to ₹10 lakh
The Government e-Marketplace (GeM) announced reforms for micro and small enterprises at its 'GeM Samvad 2026' event on 28 October 2026. These directly affect small businesses that sell goods or services to the government on GeM, or want to start.
What this means for you
If you run a micro or small enterprise and take government orders on GeM, you will now pay a lower transaction fee, and nothing at all on orders up to ₹10 lakh. New sellers also no longer have to deposit caution money while onboarding. Ordinary citizens are not directly affected; this is information for businesses.
Key facts
- Transaction fee cut from 0.50% to 0.30% of order value
- No transaction fee on orders up to ₹10 lakh (earlier limit was ₹5 lakh)
- Maximum fee capped at ₹3 lakh for orders above ₹10 crore (earlier ₹72.50 lakh)
- Caution money requirement removed from onboarding in July 2025
- Vendor assessment fee for OEMs cut by 66% to 92%, applicable from January 2024
- 108 virtual conferences held under the GeM and Laghu Udyog Bharati partnership
The Government e-Marketplace (GeM) is the online marketplace where government departments buy goods and services and businesses sell to them. On 28 October 2026, GeM held an event with ‘Laghu Udyog Bharati’ (LUB) under ‘GeM Samvad 2026’ to explain reforms meant to make public procurement easier and cheaper for micro and small enterprises (MSEs).
What has changed
GeM has cut its transaction fee from 0.50% to 0.30% of the order value. Orders up to ₹10 lakh now carry no transaction fee; the earlier limit was ₹5 lakh. For orders above ₹10 crore, the maximum fee is capped at ₹3 lakh, against ₹72.50 lakh earlier. According to the release, about 97% of orders placed on GeM attract no transaction fee.
Separately, the requirement to deposit caution money as part of the onboarding process was removed in July 2025. The vendor assessment fee for original equipment manufacturers (OEMs), applicable from January 2024, has also been reduced by 66% to 92%.
Who benefits
The reforms benefit micro and small enterprises that take, or want to take, government orders on GeM. GeM CEO Shri Mihir Kumar said at the event that these reforms have lowered the cost of participation, simplified processes and improved access to finance. Ordinary citizens are not directly affected.
Help with money
GeM Additional CEO Shri Ajit B. Chavan said that, in line with the Union Budget 2026-27 announcement, GeM has been connected with all five TReDS exchanges. He said that along with this facility, collateral-free loans through GeM SAHAY, based on purchase orders received on GeM, will help address working capital and timely payment problems faced by MSMEs.
Where to get help
The GeM-LUB partnership, formed through an agreement in 2024, has held 108 virtual conferences in addition to several in-person events across India. LUB President Shri Madhusudan Dadu and National General Secretary Shri Om Prakash Gupta said LUB will expand its reach to MSMEs through its all-India office network, weekly GeM-LUB virtual conferences and facilitation counters run by trained volunteers at various offices.
Questions and answers
What is the GeM transaction fee now?
The transaction fee is now 0.30% of the order value, down from 0.50%. No transaction fee is charged on orders up to ₹10 lakh.
On how many GeM orders is no fee charged?
No transaction fee is charged on about 97% of orders placed on GeM, according to the release.
Do I need to pay caution money to become a GeM seller?
No. The requirement to deposit caution money as part of the onboarding process was removed in July 2025.
What is GeM SAHAY?
Through GeM SAHAY, MSMEs can get loans without collateral on the basis of purchase orders received on GeM. The release says this will help with working capital and timely payment problems.
Where can MSMEs get help with GeM?
Laghu Udyog Bharati will expand its reach through its all-India office network, weekly GeM-LUB virtual conferences and facilitation counters run by trained volunteers at various offices.
Source: PIB, "'GeM संवाद 2026' में सूक्ष्म और लघु उद्यमों के लिए सार्वजनिक खरीद को अधिक सुलभ और किफायती बनाने वाले सुधारों की जानकारी दी गई", 28 October 2026. Read the original notice
This routine notice was drafted with AI from an official source and published automatically; an editor reviews it after publishing. Report an error