The Indian government has built a fully dedicated online portal called Government e-Marketplace or GeM to procure services and goods from its departments like central government, state governments, and PSUs. The main goal of GeM is to make all public procurement entirely transparent and include even the MSMEs. With Government e-Marketplace registration all government buying and supplying of goods and services can be done on this unified online procurement portal. GeM’s main objective is to help SMEs and MSMEs and lead the ease of doing business while building inclusiveness.
What is the Purpose of GeM?
The purpose of GeM is to provide access to the National Public Procurement Market and also offer direct access to various government departments and their related organisations. Government e-Marketplace login is quite easy to use and it’s also a fully automated online platform. With the introduction of Government e-marketplace registration, the government is institutionalizing a unified procurement policy to encourage behavioural change and setting up a dynamic environment for ongoing innovation and decision-making that is market-driven.
What is the Fee for Government E-Marketplace Registration?
You will be happy to know that there are NO charges or fees for government e-marketplace registration. That means you can register and do a government e-marketplace login free of cost. This also means you don’t have to pay any GST as well because there is NO GeM registration fee involved. If you however decide to go through an agent who will be registering on your behalf, they will charge you their consulting/agency fee which may include GST.
Any Hidden Charges for Government E-Marketplace Registration?
Even though there are no government e-marketplace registration charges or fees, GeM does have a revenue generation policy. As mentioned on the GeM portal, the sellers have to pay certain GeM transaction charges as and when their sales reach a certain amount.
For example, let’s say a company doesn’t have to pay any fees for government e-marketplace registration, but once its sales reach the Seller Merchandise Value or SMV of ₹20 lacs in the particular financial year, the company will be charged an annual milestone charge of 0.5% by GeM. Please note that SMV (Seller Merchandise Value) is the progressive number of orders placed or accepted by a registered seller on the GeM portal during the given financial year.
What is the Difference Between GeM Registration Fee & GeM Transaction Charges?
No company is ever charged any fee for government e-marketplace registration. However as explained above, transaction charges will be applicable for the GeM registered sellers who cross the SMV threshold limit. It is important to note that GeM transaction charges are applicable for orders that exceed ₹5 lac value. The registered seller can pay applicable GeM transaction charges when accepting the order. Listed below are the GeM transaction charges:-
| S.N. | Order Value | GEM Transaction Charges |
| 1. | ₹ 5 Lakh to ₹ 50 Cr | 0.5% of the Order Value |
| 2. | ₹ 50 Cr to ₹ 100 Cr | ₹ 25 lakh + 0.4% of the Order Value above 50 Cr |
| 3. | ₹ 100 Cr to ₹ 200 Cr | ₹ 45 lakh + 0.3% of the Order Value above 100 Cr |
| 4. | ₹ 200 to ₹ 300 Cr | ₹ 75 lakh + 0.2% of the Order Value above 200 Cr |
| 5. | ₹ 300 to ₹ 500 Cr | ₹ 95 lakh + 0.1% of the Order Value above 300 Cr |
| 6. | ₹ 500 Cr onwards | A flat fee of ₹ 115 lakh |
Please note that the GeM registration fee is not applicable to any of the above.
Further on, below GeM transaction charges are applicable for forward auction orders:
| S.N. | Order Value | Transaction Charges |
|---|---|---|
| 1. | < ₹ 200 Cr | 0.5% of the Order Value |
| 2. | > ₹ 200 Cr | Flat ₹ 1 Cr |
Please note that the GeM Registration fee is not applicable here as well.
For a forward auction case, transaction charges are borne by the buyer at the time of order approval.
GeM Transaction Charges or AMC Payment
As already shared above, no company has to pay any GeM registration fee. Having said that, GeM transaction charges have to be paid online. Just go to the government e-marketplace login and click on the ‘Pay AMC/TC’ button. In that, you will see two options on the screen – ‘Pay bifurcation’ and ‘Pay now’. Click on the ‘Pay now’ option and then choose your preferred payment mode – NEFT, RTGS or net banking and complete the payment.
Required Documents for Government E-Marketplace Registration
You need certain documents to register on the GeM portal and they are – a PAN card, applicant aadhar card, email ID, phone number, GST registration certificate, MSME certificate or Udyog Adhaar, copy of the cancelled cheque. At times few more supporting documents like photos, product lists and others are also required. Do remember not to pay any GeM registration fee If you go through a consultant.
Can BidAssist Help You With GeM Bidding?
GeM is an open, inclusive and transparent online portal, but with so much competition it can get a bit overwhelming to bid for the same set of tenders. This is where BidAssist can offer end-to-end assistance to help you complete and put together a competitive bid that is compliant with the tender’s requirements. Not only this but BidAssist also helps in sifting through thousands of tenders that get listed on GeM every single day and then the most relevant tenders suited for your profile. Once you subscribe to BidAssist, you will start receiving real-time notifications on any new tender released that is relevant to your profile. Not only this, BidAssist also offers document assistance to ensure that all of your paperwork is in order.
If you have any query regarding GeM, do feel free to get in touch with the BidAssist support team and they will resolve any query you may have, whether it is around search, document filling, document submission, results and any such related queries.