The Ministry of Commerce & Industry announced on 28 October 2026 that the Government e Marketplace (GeM) has implemented reforms to make public procurement more affordable for Micro and Small Enterprises (MSEs). Transaction charges have been lowered from 0.50% to 0.30%, and orders up to ₹10 lakh are now exempt from these charges. Additionally, vendor assessment fees for Original Equipment Manufacturers (OEMs) have been cut by 66% to 92% since January 2024. The release does not say when the transaction charge changes take effect, but notes that Caution Money deposits were removed in July 2025.
Key points
- Transaction charges reduced from 0.50% to 0.30% of order value
- Orders up to ₹10 lakh are now exempt from transaction charges
- OEM assessment fees reduced by 66% to 92% since January 2024
- Caution Money deposit requirement removed in July 2025
- GeM integrated with all five TReDS exchanges for better MSME working capital
When it applies
- dispensing with Caution Money deposit
- reduction of OEM assessment fees
- GeM Samvad 2026 event
Who it affects
- MSEs
- vendors
Refers to
- Union Budget 2026–27