MSME dues: 7 steps taken by govt to prevent delay in payments

MSME dues: 7 steps taken by govt to prevent delay in payments

Late clearance of payments to MSMEs by their government buyers including central ministries, departments, public sector units, and others against goods and services provided has been a major growth bottleneck of small businesses

Late clearance of payments to MSMEs by their government buyers including central ministries, departments, public sector units, and others against goods and services provided has been a major growth bottleneck of small businesses

While multiple measures have been undertaken by the government to address this issue, a large number of grievances have not been disposed of so far

While multiple measures have been undertaken by the government to address this issue, a large number of grievances have not been disposed of so far

Here is the list of measures taken by the government so far to prevent delay in payments to MSEs and support in receiving timely payments

Here is the list of measures taken by the government so far to prevent delay in payments to MSEs and support in receiving timely payments

Under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, Micro & Small Enterprises Facilitation Councils set up in the States/UTs to deal with the cases of delayed payments of MSEs

Under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, Micro & Small Enterprises Facilitation Councils set up in the States/UTs to deal with the cases of delayed payments of MSEs

Launched Samadhaan portal for filing grievances and for monitoring the outstanding dues to the MSEs from the buyers of goods and services on October 30, 2017

Launched Samadhaan portal for filing grievances and for monitoring the outstanding dues to the MSEs from the buyers of goods and services on October 30, 2017

Requested states/UTs to set up more number of facilitation councils for quicker disposal of cases related to delayed payments

Requested states/UTs to set up more number of facilitation councils for quicker disposal of cases related to delayed payments

Created a special sub-portal within Samadhaan Portal in June 2020 after the AatmaNirbhar Bharat announcements, for reporting the dues and monthly payments by central ministries/department/public sector enterprises to MSMEs

Created a special sub-portal within Samadhaan Portal in June 2020 after the AatmaNirbhar Bharat announcements, for reporting the dues and monthly payments by central ministries/department/public sector enterprises to MSMEs

Instructed CPSEs and all companies with a turnover of Rs 500 crore or more to get themselves on the Trade Receivables Discounting System, an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers

Instructed CPSEs and all companies with a turnover of Rs 500 crore or more to get themselves on the Trade Receivables Discounting System, an electronic platform for facilitating the discounting of trade receivables of MSMEs through multiple financiers

Companies which get supplies of goods or services from MSEs and whose payment to MSEs exceeds 45 days from the date of acceptance or the date of deemed acceptance of the goods or services also need to submit a half-yearly return to the Ministry of Corporate Affairs stating the amount of payments due and the reasons of the delay

Companies which get supplies of goods or services from MSEs and whose payment to MSEs exceeds 45 days from the date of acceptance or the date of deemed acceptance of the goods or services also need to submit a half-yearly return to the Ministry of Corporate Affairs stating the amount of payments due and the reasons of the delay

Budget 2023 allowed deduction under Section 43B of the Income Tax Act for expenditure incurred on payments only when payment is made to MSMEs

Budget 2023 allowed deduction under Section 43B of the Income Tax Act for expenditure incurred on payments only when payment is made to MSMEs

Image: Pexels

Image: Pexels