Govt Entities to Pay MSME within 45 Days
·
Bill
Discounting through TReDS also in Place
[Press Release/02.09.2020]
To help the MSMEs in this long standing problem, Government of
India has taken a series of measures recently. Union Finance Minister, as part of
AtmaNirbhar Bharat package, had announced that Government
entities should make such payments within 45 days.
The Ministry of MSME followed up this announcement vigorously
and took up the matter with the Central Ministries and Central Public Sector Enterprises
(CPSEs) and State Governments. Particularly very active follow up has been done
with the Heads of CPSEs.
Some more interventions are worth mentioning:
To make the reporting easy, regular and seamless, a dedicated
online reporting format has been made for reporting the monthly payments and monthly
pendency. As reported, more than Rs. 6800 crores have
been paid by the Ministries and CPSEs in the last three months alone. It is coming
out that almost three fourth of the monthly dues have been paid during the same
month by most of the Central Ministries and CPSEs. The pending amounts are expected to be in the
normal course of business and below 45 days;
Active follow up is being done with the State Governments for
payment and regular reports. Similar online
reporting system has been devised and put in place for the States’ reporting also;
Another intervention is that the Department of Expenditure has
issued an OM to the effect that the buyer organization will have to pay penal interest
of 1% per month for delayed payment beyond prescribed timeline till the date of
such payment;
In yet another landmark intervention, on request of Ministry
of MSME, Government in Finance Ministry has waived the charges for on-boarding the
TReDS platforms. This platform has been designed for bill
discounting of the MSMEs against such supplies where payments are awaited. It is
to be noted that earlier MSMEs were supposed to pay on-boarding charge of Rs. 10,000/- to the concerned exchanges who are part of the
TReDS mechanism. Government has now waived the on-boarding
charges for the MSMEs till March, 2021. Most
of the CPSEs and a number of private companies are already on-board the TReDS mechanism. MSME Ministry has requested the also to do
so;
For the ease of business of MSMEs, Ministry’s portal for new
registration of Udyam (https://udyamregistration.gov.in/)
is being integrated with TReDS and GeM in a seamless manner. Therefore, it would be just enough
and useful to register as MSME on the Government portal. Integration with TReDS and GeM mechanisms will happen
automatically. To re-iterate, registration as MSME/Udyam
is online and totally free of cost. It is also paperless and fully based on self-declaration.
No proof or documents are required;
We encourage the MSMEs to register on the Udyam Registration Portal. As on 1st September, close to 4.00
lakh registrations have already taken place since the new system was launched in
July;
The Ministry of MSMEs re-iterates and alerts the enterprises
and entrepreneurs to beware of fake websites who are charging money in the name
of facilitating registration. It is requested that the registration should be done
on and through the Government website only.
It may be stated, The MSME Development Act of 2006 provides that
such dues should be paid within 45 days.
However, it is seen that MSME suppliers of goods and services do not receive
their due payments within stipulated time. Public and private entities do cross
this time limit and hence they cause hardship to the MSMEs.