There is a possibility of amendment in the rule of making payment to MSMEs within 45 days

The government may amend the payment rules for small businesses. Because, there have been many complaints in the country that the current government scheme in the matter of payment may be well-intentioned, but it puts pressure on small companies for payment.

Therefore, small businesses have to go through a lot of difficulties. There are widespread complaints that the 45 days payment rule is being used only against small companies. Recently there was an incident where an exporter operating multiple units in Chennai was forced to cancel the registration of his company registered on Udyam (a portal for micro, small and medium enterprises). This was because large buyers did not want to get into the hassle of a government order mandating actual payment of dues within 45 days to micro, small and medium enterprises (MSMEs) to claim deductions on expenditure for tax purposes.

Not only this, there are some others in the MSME sector who say that in some parts of the country, there is a payment rule of 60 days to 90 days, while the 45-day payment rule is not in accordance with business practice. The government has considered the complaints received from small businessmen and the rules may be amended in the next budget.

Numerical Data of MSMEs

MSMEs provide employment to 17.9 crore people, of which 4.5 crore are women workers

There are 69.4 lakh MSMEs in the manufacturing sector and more than two crore MSMEs in the services sector

There are 2.4 lakh exporting units of MSMEs, which export Rs 13 lakh crore