Free tool
MSME Payment Checker
Check when a micro or small supplier must be paid, which year your tax deduction falls in, and the indicative interest on late payment. Check one invoice, or up to 20 at once for a year-end review.
Checked: October 2026
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Check your invoices
How this check works
Buyers must pay micro and small enterprises within 15 days of accepting the goods or services where there is no written agreement, or within the agreed period where there is one, up to a maximum of 45 days. Acceptance is the day of delivery, unless a written objection is raised within 15 days, in which case it is the day the objection is resolved.
If payment is made late, interest is payable at three times the RBI bank rate, compounded with monthly rests, and that interest is not deductible for income tax. The expense itself is deductible only in the year it is actually paid: under of the Income-tax Act, 1961 up to FY 2025-26, and under Section 37(2)(g) of the Income-tax Act, 2025 from 2026-27. Paying before the return due date does not preserve the earlier year's deduction.
The rules apply to suppliers registered as micro or small enterprises carrying on manufacturing or services, not to medium enterprises or traders. The article on the MSME 45-day payment rule explains the rule in full, with examples.
S.O. 5575(E), dated 12 October 2026, brings amendment sections 2–7, 11 and 13–17 into force from 15 October 2026. Amendment section 12, which changes Facilitation Council composition, is scheduled for 15 December 2026. Sections 8–10 are not commenced by this notification. The commenced changes cover classification and registration, settlement for Central Public Sector Enterprises and notified entities, Council establishment, disclosures and penalties. They do not replace the Section 15 payment periods or Section 16 interest calculation used here. The checker’s 15/45-day and monthly-compounding formulas are therefore unchanged; it does not assess the separate TReDS obligations. Official commencement notification.
Tax & Regulatory Compliance service → · Compliance Calendar →
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Review several invoices without creating a second tool
Use the existing year-end ledger mode for up to 20 invoices. Confirm supplier eligibility, acceptance/dispute facts, written agreement and payment dates. Payment timing and income-tax deduction treatment are different questions; a list of late amounts is not automatically the final tax disallowance.
Do not enter vendor names, tax identifiers or confidential free text. Use the public page link when sharing; calculation figures require a separate deliberate choice.