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Revenue Policy

The document outlines a new revenue policy for the e-marketplace Gem effective June 1, 2020. Key points include: 1) A 0.5% annual milestone charge will be levied on sellers exceeding 20 lacs in annual merchandise value. 2) Transaction charges of 0.5-0.2% will be levied on orders over 5 lacs depending on order value. 3) Charges will be paid by sellers upon order acceptance and placement date determines annual merchandise value. 4) The policy applies to all bids and orders on/after June 1, 2020. Refunds on charges are allowed under certain cancellation conditions.

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Rafeek Munnolli
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42 views2 pages

Revenue Policy

The document outlines a new revenue policy for the e-marketplace Gem effective June 1, 2020. Key points include: 1) A 0.5% annual milestone charge will be levied on sellers exceeding 20 lacs in annual merchandise value. 2) Transaction charges of 0.5-0.2% will be levied on orders over 5 lacs depending on order value. 3) Charges will be paid by sellers upon order acceptance and placement date determines annual merchandise value. 4) The policy applies to all bids and orders on/after June 1, 2020. Refunds on charges are allowed under certain cancellation conditions.

Uploaded by

Rafeek Munnolli
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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REVENUE POLICY OF GEM w.e.f 01.06.

2020

a. A one-time charge titled “Annual Milestone Charge” shall be levied @ 0.5% on all sellers
clocking a threshold Seller Merchandise Value. of Rs. 20 lacs in each financial year.
b. Seller Merchandise Value shall be reckoned as the progressive total of order values placed
upon and accepted by seller during a financial year.
c. “Annual Milestone Charge” shall be recovered from the seller simultaneous to its clocking
the threshold Seller Merchandise Value of Rs. 20 lacs.
d. For sellers who have clocked the threshold Seller Merchandise Value, Transaction Charge
at following rates shall be levied on all orders equal to or exceeding Rs. 5 lacs value in
each case: -

Product Order Value Transaction fee slab


≥5lacs <50 Cr. 0.5%

≥50cr but <100 Cr. 0.5% for 50cr (25 lacs) +


0.4% of value above 50 Cr.

≥l00cr but <200 Cr. 0.5% for 50cr (25 lacs) +


0.4% for next 50 Cr. (20 lacs) +
0.3% of value above 100 Cr.
≥200 Cr. 0.5% for 50cr (25 lacs) +
0.4% for next 50 Cr. (20 lacs) +
0.3% for next 100 Cr. (30 lacs) +
0.2% of value above 200 Cr.
e. Transaction Charge shall be paid by a seller to GeM at the time of acceptance of
concerned order.
f. Date of placement of the order shall be taken into account for the purpose of calculating
Seller Merchandise Value.
g. The proposed revenue model shall be applicable in respect of all bids published on
GeM’s portal on or after June 01, 2020. In respect of Direct Purchase/L1 buying, this
model shall be applicable on all orders placed on GeM portal on or after June 01, 2020.
h. Levy of Annual Milestone/Transaction Charges shall be subject to government levy (e.g.
GST), as applicable.
i. No Transaction charge shall be payable:
i. For orders less than Rs. 5 lacs in value.
ii. For orders which are placed and accepted by seller before the Seller Merchandise
Value (SMV) of INR 20 Lacs is reached.
j. For all purposes as mentioned above, each financial year shall be treated as a separate
and non-fungible unit.
k. In the case of cancellation of contract (as mutually agreed between buyer and seller), a
seller shall be eligible for refund of Transaction Charges in following cases:
i. Incorrect selection of goods or services by buyer;
ii. In case the related order was placed erroneously or by mistake by buyer;
iii. Product/service not required or partially required, as a result of which the buyer
refused some or full quantity of product/service or requested for discontinuation
of service(s) in the middle of contract;
iv. Consignee not available to receive the product/service;
v. Any other reason (s)to be explicitly justified by the seller.
l. However, no refund of Transaction Charges shall be made in case buyer cancels contract
due to non- fulfilment of any contractual obligations by seller or due to any omission
/misleading /false information provided by seller/service provider on GeM Portal.

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