Historic Interventions made by the Central Government to ensure timely payments to MSMEs

Last updated: 07 September 2020

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The Central Government has implemented significant measures to ensure Micro, Small, and Medium Enterprises (MSMEs) receive timely payments. These interventions include a directive for government entities to pay within 45 days, a new online reporting system for payments and pendency, and the issuance of a directive for buyer organisations to pay a 1% monthly penal interest for delayed payments. Furthermore, charges for onboarding MSMEs onto the TReDS platform, which facilitates bill discounting, have been waived until March 2021.

Historic Interventions made by the Central Government to Ensure Timely Payments to MSMEs MSME Ministry takes lead in helping the MSMEs get their dues On-boarding of MSMEs on TReDS Mechanism made free MSME Ministry alerts MSMEs to beware of fake websites charging money in the name of registr

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FAQ :

Government entities are now required to make payments to MSMEs within 45 days.

Yes, buyer organisations must pay a penal interest of 1% per month for payments delayed beyond the prescribed timeline.

TReDS is a platform designed for bill discounting of MSMEs against supplies where payments are awaited.

No, the government has waived the onboarding charges for MSMEs onto TReDS platforms until March 2021.

MSMEs can register online and for free on the Udyam Registration Portal (https://udyamregistration.gov.in/). Registration is paperless and based on self-declaration, with no documents required.

MSMEs are alerted to beware of fake websites charging money for registration and are advised to only register through the official Government website.

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CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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Historic Interventions made by the Central Government to ensure timely payments to MSMEs