Many businesses entering the public procurement space are confused about the costs involved in joining the Government e-Marketplace. In this guide, we break down the fee structure, caution money requirements, and transaction charges for selling on GeM.
Important Compliance Disclaimer
SahayakAI is an independent, private helper platform. We are not affiliated with, authorized, or officially connected with the Government e-Marketplace (GeM Portal) or the Government of India. The official caution money structure and fee updates can be verified directly on https://gem.gov.in.
Breakdown of GeM Portal Charges
1. Account Creation Fee
- Official Fee: ā¹0 (Free)
- Warning: The official signup process does not require any payment. If an agency or portal asks for payment to set up your basic profile, verify their credentials.
2. Caution Money Deposit (CMD)
Sellers must deposit a caution money sum into the portal's designated bank account to prevent non-compliance or contract defaults. The deposit amount depends on your annual business turnover:
| Annual Turnover Slab | Caution Money Deposit Amount |
|---|---|
| Less than ā¹1 Crore | ā¹5,000 |
| ā¹1 Crore to ā¹10 Crore | ā¹10,000 |
| More than ā¹10 Crore | ā¹25,000 |
- Exemptions: Micro and Small Enterprises (MSEs) holding active Udyam certificates, and recognized startups, are exempt from caution money deposits.
3. Transaction Charges (TC)
Once you start receiving orders, GeM levies a small transaction charge based on order value:
- Orders up to ā¹5 Lakh: Free (No transaction fee).
- Orders above ā¹5 Lakh: A small percentage fee is charged per transaction, capped at a maximum limit.