In a significant move to ensure timely payments to micro and small enterprises (MSEs), the Ministry of Micro, Small and Medium Enterprises (MSME) has issued a new directive mandating companies to submit half-yearly returns on overdue payments.
As per Notification , the government, exercising its powers under Section 9 and Section 15 of the MSME Development Act, 2006, has instructed all companies procuring goods or services from micro and small enterprises to comply with stricter reporting norms.
Key Highlights of the Notification
- Mandatory Reporting: Companies whose payments to MSEs exceed 45 days from the date of acceptance or deemed acceptance must file a return with the Ministry of Corporate Affairs.
- Details to be Reported:
- The total amount of outstanding payments to MSMEs.
- Reasons for payment delays beyond the stipulated period.
- Compliance Timeline: Companies must submit these reports on a half-yearly basis.
Notification Details
Notification No. F. No. 16/8/2018/E-P&G/Policy
Date: 25th March, 2025
Read More: Haryana GST Dept. Invites EOIs for Empanelment of CAs and Cost Accountants for Special Audits
Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
Latest posts by Mariya Paliwala (see all)
- Delhi High Court Questions Rejection of Refund by GST Dept. Despite Appellate Order - July 28, 2025
- Lease Premium for Land Transfer Not A Taxable Service: CESTAT - July 28, 2025
- Mining Services Between Distinct Entities Held Taxable, Not Self-Service: CESTAT Rejects Rs. 28 Lakh Refund - July 28, 2025
