While a certain of section of MSMEs is expecting the government to repeal the changes made to the 45-day payment rule, here is the current status of delayed MSME payments in India:

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Jul 09, 2024

Mohammed Ramees

Since its launch in October 2017, MSME Samadhaan has received 1.9 lakh applications, involving a total amount of Rs 44,572 crore

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18,237 applications have been mutually settled involving Rs Rs 2,303 crore to MSEs

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49,718 applications involving Rs 8,288 crore are yet to be viewed by MSE Facilitation Council

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37,766 cases involving Rs 6,532 crore are disposed by the council

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52,692 applications involving Rs 10,188 crore were rejected by the council

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39,540 cases involving Rs 13,117 crore are currently under the consideration of MSEFC

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The government had launched the Samadhaan portal in October 2017 to monitor delayed payments

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New clause (h) to Section 43B of the IT act allows expenses to MSME buyers only if payment made within 45 days in the year of actual payment and not when it was incurred as an expense

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Recently, MSME body FISME had suggested a ‘Payment Act’ to instill transparency in procurement, reduce litigation and improve cash flow of businesses

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