MSME Payment within 45 Days Notification PDF

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MSME Payment within 45 Days Notification

In a significant development for the assessment year 2024-25, the central government has implemented a new rule requiring buyers to settle payments for goods purchased from Micro, Small, and Medium Enterprises (MSMEs) within 45 days of delivery.

Additionally, all outstanding dues to MSMEs must be cleared before March 31, 2024. Failing to meet these deadlines will result in the pending payment being deemed as income, subject to taxation.

While the government’s intention behind this rule is to safeguard the interests of MSMEs, it has stirred uncertainty in the market. Notably, Ahmedabad’s textile markets are witnessing a surge in order cancellations, and chemical traders are also experiencing the ripple effects of the new regulation. Some buyers are strategically deciding not to make any purchases before February 16 to ensure that their payment deadlines fall after March 31.

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