Soon More Tax Reductions For Startups in India and Failed Startups Can Exit in 3 Months

The commerce and industry ministry, along with Department of Industrial Policy and Promotion (DIPP), is working on a process to enable startups to register and sell products on the government’s online procurement portal Government e-Marketplace (GeM).

GeM is in the process of developing a proof-of-concept (PoC) corner for startups and will soon be able to onboard startups on the GeM platform.

This will be a launch pad for start-ups in the country to access government market and give them a chance to sell on the GeM platform.


The development comes within a month after Traders’ body Confederation of All India Traders (CAIT) has urged the government to launch an e-commerce marketplace portal in partnership with trade associations where small traders, artisans and women entrepreneurs can sell their products in a ‘fair and transparent manner’.

Government users will be able to try out the innovative products and services offered by start-ups on a trial basis and give feedback, according to an official statement here on Thursday.

As start-up products and services are innovative, and cannot be compared with similar products and services, a buyer may use them for three months and thereafter they certify that the product is useful and the price is reasonable.

Based on this user certification the product or service will be listed on GeM.

According to an official statement, “As start-up products and services are innovative, and cannot be compared with similar products and services, a buyer may use them for three months and thereafter they certify that the product is useful and the price is reasonable. Based on this user certification the product or service will be listed on GeM.”

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Earlier in September, GeM also said to be contemplating on allowing private buyers or companies outside government to buy on the government e-marketplace platform in order to help lower the cost of goods and services for governments and raise online transactions with figures of $25 billion.

Currently, GeM has no access to private buyers outside the government and its various entities.

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