Visit LegalDocs and get Udyam registration done in a simple procedure. Read our section on “How to Register MSME using Udyam Registration Portal?” to directly register on the portal.
The new MSME registration process is completely online, paperless and based on self-declaration. No documents or proofs are required to be uploaded for registering an MSME. You may still need an Aadhaar card, Pan Card and Bank account details while form filling.
Labor and products which Government gets consistently are immense and huge: More than one-fifth of India’s GDP is created from buys made by Central Govt, State Govt, and different Govt divisions, PSUs across India.
We are discussing a market size of around Rs 60,000 crore here with regards to Govt acquisition.
Prior, the whole course of Govt acquirement was stunned, appropriated, and with practically no concentration. Whichever Govt office needed to acquire any labor and products, they used to declare tenders at their nearby level. This prompted a superfluous deferral, low quality of acquisition, and a decentralized framework with escape clauses.
To stop this, the Govt of India sent off GeM or Government eMarketplace in 2016, which incorporated the whole acquisition process by various Govt divisions and Ministries into one single entry.
Furthermore, this is a gigantic hit.
In 2020, Govt reported that Rs 20,000 crore worth of Govt acquisition happened by means of the GeM entry, and this ended up being a gamechanger.
In this article, we will share what is Government eMarketplace, and what is the GeM Registration Process for organizations. Furthermore, we will share the whole financial aspects and adaptation procedure of Govt, including the GeM enlistment charge and that’s only the tip of the iceberg.
What is Government eMarketplace? Government eMarketplace is a huge entryway, wherein vendors offer their labor and products, and any Govt division Ministry or PSU can acquire them.
It works very much like any online business commercial center like Amazon or Flipkart; however in GeM, the purchasers are just Govt divisions, and dealers can be anybody who has enlisted in the GeM gateway.
The GeM enlistment process for organizations is simple and consistent, and there is no enrollment expense too
Be that as it may, Govt has presented an adaptation methodology, which is reliant upon the business volume and nature of administration given.
GeM portal has some of the most advanced B2B eCommerce features such as e-auction, reverse e-auction, demand aggregation, strict quality control, complete transparency, and more.
GeM Registration Process for Businesses: How to Register in GeM?
The GeM registration process for businesses (or sellers) is extremely easy and seamless and can be done via the GeM portal.
Since there is no GeM Registration Fee, the sellers can be assured of the least expensive way to become part of GeM and start offering their services and products.
However, before registration, the seller should have some pre-requisites:
What type of business is it? Is it a firm, company, proprietorship, trust, or society?
Name of the registered business and the related documents
Aadhaar card and PAN card of the user (mandatory requirement)
In case a seller registers themselves as MSME, then there are added benefits since Govt have reserved a percentage of their procurement for MSMEs, across India
Startups too can register as a seller, and scale their business with Govt procurement on GeM.
The GeM registration process for sellers starts here, wherein you need to enter all the above information.
Need Professional assistance with registration? Contact Us
GeM Registration Fee: Monetisation Strategy of Govt
To be clear, there is no registration fee for sellers. The GeM registration process is entirely free for all sellers and businesses
However, effective June 1st, 2020, the Govt of India has introduced a monetization policy within GeM portals, which is applicable to all sellers.
This is how it works:
Once a seller crosses Seller Merchandise Value (SMV) of Rs 20 lakh in a year, then they will be required to pay a one-time fee of Rs 10,000 to stay active on the GeM portal as a seller.
In case a seller has already exceeded SMV of Rs 20 lakh, then a transaction charge will be levied on all orders of Rs 5 lakh or more value. It will depend on the value of the goods and services being offered.
In case the order value is between Rs 5 lakh to Rs 50 crore, then a 0.5% transaction fee will be charged from the sellers.
If the order value is between Rs 50 crore and less than Rs 100 crore, then 0.5% is charged for Rs 50 crore (which is Rs 25 lakh) + 0.4% for next Rs 50 crore (which is Rs 20 lakh) + 0.3% charge of value above Rs 100 crore of goods.
If the order value is more than Rs 200 crore, then 0.5% is charged for Rs 50 crore (which is Rs 25 lakh) + 0.4% for next Rs 50 crore (which is Rs 20 lakh) + 0.3% charge for the next Rs 100 crore (which is Rs 30 lakh) + 0.2% of order value above Rs 200 crore.
In case any product is returned or refunded, then the subsequent charges will be rolled back
Benefits of GeM Sellers
Full access to a centralized, national procurement portal. This means a massive increase in business opportunities, all across India.
Zero registration fee. ( Our Consultation charges for registration)
Special quotas and benefits for MSMEs, and startups with assured procurement in some categories.
Zero paperwork is needed as it’s a completely online process.
East brand recognition and brand approval process.
A robust Online grievance redressal system for all sellers and buyers.
Easy to use the dashboard to monitor sales, and analyze the trends.
Sellers from NE states and J&K are exempted from ITR filings as well.
Dynamic pricing will depend on the market conditions and demand-supply ratio.
If you are an MSME, and trying to find out How to Register in GeM, and need more clarity on the GeM registration fee, then you have arrived at the right destination.
1. (A) In case of an Individual or HUF or AOP or Body of Individual or any other artificial juridical person:-
Individuals (Other than senior and super senior citizen)
A.Y. 2021-22
Income Tax Slab
Tax Rate
Up to Rs. 2,50,000
Nil
Rs. 2,50,000 to Rs. 5,00,000
5%
Rs. 5,00,000 to Rs. 10,00,000
20%
Above Rs. 10,00,000
30%
Senior Citizen (who is 60 years or more at any time during the previous year)
A.Y. 2021-22
Income Tax Slab
Tax Rate
Up to Rs. 3,00,000
Nil
Rs. 3,00,000 to Rs. 5,00,000
5%
Rs. 5,00,000 to Rs. 10,00,000
20%
Above Rs. 10,00,000
30%
Super Senior Citizen (who is 80 years or more at any time during the previous year)
A.Y. 2021-22
Income Tax Slab
Tax Rate
Up to Rs. 5,00,000
Nil
Rs. 5,00,000 to Rs. 10,00,000
20%
Above Rs. 10,00,000
30%
Hindu Undivided Family (Including AOP, BOI and Artificial Juridical Person)
A.Y. 2021-22
Income Tax Slab
Tax Rate
Up to Rs. 2,50,000
Nil
Rs. 2,50,000 to Rs. 5,00,000
5%
Rs. 5,00,000 to Rs. 10,00,000
20%
Above Rs. 10,00,000
30%
Add:
(1) Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-
Range of Income
Rate of Surcharge
Rs. 50 Lakhs to Rs. 1 Crore
10%
Rs. 1 Crore to Rs. 2 Crores
15%
Rs. 2 Crores to Rs. 5 Crores
25%
Rs. 5 crores to Rs. 10 Crores
37%
Exceeding Rs. 10 Crores
37%
Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.
However, marginal relief is available from surcharge in following manner-
in case where net income exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.
in case where net income exceeds Rs. 1 crore but doesn’t exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
in case where net income exceeds Rs. 2 crore but doesn’t exceed Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore.
in case where net income exceeds Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore.
(2) Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.
Rebate: A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is lower.
1. (B) Special tax Rate for Individual and HUFs (Section 115 BAC):-
The Finance Act, 2020, has provided an option to Individuals and HUF for payment of taxes at the following reduced rates from Assessment Year 2021-22 and onwards:
Income Tax Slab
Tax Rate
Up to 2,50,000
Nil
From 2,50,001 to 5,00,000
5%
From 5,00,001 to 7,50,000
10%
From 7,50,001 to 10,00,000
15%
From 10,00,001 to 12,50,000
20%
From 12,50,001 to 15,00,000
25%
Above 15,00,000
30%
Add:
a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-
Range of Income
Rate of Surcharge
Rs. 50 Lakhs to Rs. 1 Crore
10%
Rs. 1 Crore to Rs. 2 Crores
15%
Rs. 2 Crores to Rs. 5 Crores
25%
Rs. 5 crores to Rs. 10 Crores
37%
Exceeding Rs. 10 Crores
37%
Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.
However, marginal relief is available from surcharge in following manner-
in case where net income exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.
in case where net income exceeds Rs. 1 crore but doesn’t exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
in case where net income exceeds Rs. 2 crore but doesn’t exceed Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore.
in case where net income exceeds Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore.
b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.
Note 1: A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.
Note 2: The option to pay tax at lower rates shall be available only if the total income of assessee is computed without claiming specified exemptions or deductions:-
The standard deduction, professional tax and entertainment allowance.
Leave travel concession u/s 10(5).
House rent allowance u/s 10(13A).
Allowances received by the members of Parliament and State Legislature etc u/s 10(17).
Allowances for expenses related to performance of duties u/s 10(14).
Minor child income allowance.
Interest paid on home loan for calculation of taxable income u/s 24(b) for the property which is self occupied.
Loss from any other house property.
Deduction of 1/3 of family pension or Rs 15000 whichever is less from his family pension u/s 57(iia).
Deduction under any of the provisions of Chapter VI-A. Except deduction for employer’s contribution made under NPS scheme u/s 80CCD(2) subject to the limit of 14% of salary in case of Central Government employee and 10% in case of other employee.
2. Partnership Firm:-
For the Assessment Year 2020-21 & 2021-22, a partnership firm (including LLP) is taxable at 30%.
Add:
(a) Surcharge :The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).
(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge
3. Local Authority:-
For the Assessment Year 2020-21 & 2021-22, a local authority is taxable at 30%.
Add:
(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).
(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.
4. Domestic Company:-
Income-tax rates applicable in case of domestic companies for assessment year 2020-21 and 2021-22 are as follows:
Domestic Company
Assessment Year 2020-21
Where its total turnover or gross receipt during the previous year 2017-18 does not exceed Rs. 400 crore
25%
Where its total turnover or gross receipt during the previous year 2018-19 does not exceed Rs. 400 crore
NA
Any other domestic company
30%
Add:
(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. The surcharge shall be subject to marginal relief, which shall be as under:
(i) Where income exceeds Rs. 1 crore but not exceeding Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
(ii) Where income exceeds Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore
(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.
A. Special Tax rates applicable to a domestic company
The special Income-tax rates applicable in case of domestic companies for assessment year 2020-21 and 2021-22 are as follows:
Surcharge : The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.
Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.
MAT : The domestic company who has opted for special taxation regime under Section 115BAA & 115BAB is exempted from provision of MAT. However, no exemption is available in case where section 115BA has been opted.
In that case, the provisions of Minimum Alternate Tax (MAT) applies, tax payable cannot be less than 15% (+HEC) of “Book profit” computed as per section 115JB. However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange. For provisions relating to MAT refer tutorial on “MAT/AMT” in tutorial section.
5. Foreign Company:-
Nature of Income
Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government
50%
Any other income
40%
Add:
(a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:
(i) Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.
(ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.
(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.
6. Co-operative Society:-
Taxable income
Tax Rate
Up to Rs. 10,000
10%
Rs. 10,000 to Rs. 20,000
20%
Above Rs. 20,000
30%
Add:
(a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).
(b) Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.
