After Udyam registration, keep details updated on the portal, allow annual reclassification from ITR and GST data, and use MSMED Act protections: buyers must pay micro and small suppliers within 45 days, companies with overdue MSE dues file MSME-1, and disputes can be taken to the MSME Samadhaan portal.
Updating your registration
Update address, activities, bank details and ownership changes on the portal. Accurate data keeps you eligible for schemes and procurement benefits.
Reclassification
Classification is revised based on investment and turnover from tax data. Moving up a category does not end benefits immediately; transition rules allow continued benefits for a period.
Payment protection
- Buyers must pay within the agreed period, not exceeding 45 days.
- Delayed payments carry compound interest at three times the bank rate.
- Companies file half-yearly MSME-1 returns of dues outstanding beyond 45 days.
- Section 43B(h) limits buyers' deductions for late payments to MSEs.
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Get expert help →Resolving disputes
File a delayed payment case on MSME Samadhaan. The Micro and Small Enterprises Facilitation Council attempts conciliation and can arbitrate.
Frequently asked questions
Do MSMEs need to file any annual return on Udyam?
No separate annual return is filed on Udyam. Data is updated from ITR and GST, and you update other details as they change.
Does 43B(h) apply to medium enterprises?
No. The Section 43B(h) payment rule applies to amounts due to micro and small enterprises, not medium enterprises.
Can traders use MSME Samadhaan?
The delayed payment provisions primarily protect micro and small manufacturers and service providers. Traders' eligibility for these remedies is limited.
What if my Udyam data is wrong?
Correct it through the update option. Wrong self-declaration can lead to cancellation of registration and withdrawal of benefits.
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