Government eMarketplace or GeM is a marketplace where any seller can register and sell their products and services. Registration is mandatory for selling on the GeM platform and then, a seller can list their products on the portal. Not surprisingly, many ask if GeM portal charges any registration fee? This article will discuss GeM registration fees and other charges on the portal.
What are the registration charges on GeM portal?
If you want to register as a buyer or seller on the GeM portal, the registration is absolutely free of cost. The government of India does not charge you anything for registering.
However, if you have appointed a consultant or an agent who is registering on your behalf, you will have to pay their consultancy fee.
Many ask if you need to pay GST on registration fee? When you do not have to pay registration fee, the question of GST does not arise. You do not have to pay GST since registration is free. But when you seek assistance to register, you may have to pay GST on the consultancy fee.
What are other charges you need to pay?
As mentioned earlier, you do not have to pay anything at the time of registration. However, GeM has a Revenue Policy. According to the policy, sellers need to pay fees when their sales reach a certain mark. Meaning you will need to pay GeM transaction charges, when an seller’s sale crosses certain figure. Here are the details of the same.
Annual Milestone Charges on GeM portal: GeM will charge one time ‘Annual Milestone Charge’ @ 0.5% when the company’s sales reach the Seller Merchandise Value (SMV) of ₹20 lakh in each financial year.
Note: SMV is the progressive total of orders placed and accepted by the seller on GeM portal during each financial year.
What are the transaction charges on GeM?
Additionally, for sellers who have reached the threshold limit of SMV, transaction charges will be implied on the following rates.
A seller needs to pay applicable transaction charges at the time of accepting the order. Here are charges applicable on each order exceeding ₹5 lakh.
|Applicable transaction charges
|From ₹5 lakh to ₹50 Cr
|0.5% of order value
|From ₹50 Cr to ₹100 Cr
|₹25 lakh + 0.4% of order value above 50 Cr
|From ₹100 Cr to ₹200 Cr
|₹45 lakh + 0.3% of order value above 100 Cr
|From ₹200 Cr to ₹300 Cr
|₹75 lakh + 0.2% of order value above 200 Cr
|From ₹300 Cr to ₹500 Cr
|₹95 lakh + 0.1% of order value above 300 Cr
|From ₹500 Cr onwards
|Flat fees of ₹115 lakh
Note: Transaction charges are not applicable for the orders below ₹5 lakh
Transaction charges differ in case of an auction. Transaction charges are applicable as following in the case of Forward Auction Orders:
|Below ₹200 Cr
|0.5 % of order value
|Above ₹200 Cr
|Flat ₹1 Cr
Note: Transaction charges should be borne by the buyer in case of Forward Auction. This is to be paid at the time of acceptance of concerned order. In case of any dispute with regards to transaction charges, you can always reach out to GeM customer care team.
How to pay GeM registration fees online (annual milestone charges/transaction charges)?
You can pay GeM transaction charges online. Here is a step-by-step guide.
- On the order screen, click on Pay AMC/TC button.
- On the next screen, two options will be displayed: payment bifurcation and Pay now.
- Click on ‘Pay now’
- Now you will be able to make payment as per your preferred mode of payment that is NEFT or RTGS or net banking.
GeM is an open marketplace and hence provides an opportunity for small companies. Businesses can bid for tenders on GeM as well as buy and sell goods. Instead of getting overwhelmed with its pricing slabs, you can grow your business with this opportunity. Hence, you need to calculate smart and quote a price considering all the expenses might occur for the project including transaction fees. This will help you in maintaining your profit margin.