Lok Sabha Question No. 2199 (UNSTARRED), answered on 2026-02-12
Subject: Financial Losses by MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Shyamkumar Daulat Barve

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 2199 TO BE ANSWERED ON: 12.02.2026

## FINANCIAL LOSSES BY MSMEs

## 2199.  SHRI SHYAMKUMAR DAULAT BARVE:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether the Ministry is aware that, after the enforcement of the mandatory payment provision within 45 days under Section 43B(h) of the Income Tax Act, 1961, large companies in the country are reducing the number of orders placed with registered Micro, Small and Medium Enterprises (MSMEs) units or cancelling orders that were already placed, if so, the details thereof;
- (b) whether  the  Ministry  has  made  any  assessment  of  the  business  and  financial  losses  being incurred by MSME units as a result and if so, the key findings thereof;
- (c) whether  the  Ministry  has  consulted  the  Ministry  of  Finance  on  this  matter  and  considered making any modifications in the implementation of the said provision or extending the timeline for compliance and if so, the details thereof; and
- (d) the  percentage  of  the  total  cases  registered  on  the  MSME  Samadhan  Portal  that  have  been resolved so far and the details of the outstanding payment amount currently pending, State/UT-wise?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) to (c): To  ensure  timely  payments  to  Micro,  Small  and  Medium  Enterprises  (MSMEs)  vide Finance Act 2023, clause (h) was inserted in Section 43B of the Income Tax Act 1961. The clause provides that any sum payable by the assessee to a Micro and Small Enterprise (MSE) beyond the time limit  specified  in  section  15  of  the  Micro,  Small  and  Medium  Enterprises  Development  Act,  2006, which cannot be more than 45 days, shall be allowed as a deduction only on actual payment.

A  number  of  stakeholders,  including  MSME  associations  have  endorsed  the  intervention introduced to ensure timely payments as being beneficial to the Micro and Small Enterprises, which were grappling with the issue of delayed payments, cash flow and the risk of business getting closed due to financial constraints.

The Ministry is continuously monitoring issues relating to credit flow and payment delays faced by MSMEs through interactions with stakeholders including Ministry of Finance, MSMEs, and MSME industry associations. The provision is intended to strengthen payment discipline and improve liquidity for  Micro  and  Small  Enterprises.  No  separate  assessment  linked  to  the  implementation  of  Section 43B(h) has been undertaken.

(d): As per data available on the MSME SAMADHAAN Portal, approximately 61.50 % of the total cases registered have been disposed of so far. The outstanding payment amount currently pending with States  and  MSEFCs  is  Rs.  14209.82  crore.  State/UT-wise  details  of  outstanding  amount  is  at Annexure-A.

*****

| State/UT-wise details of amount* currently pending as per SAMADHAAN Portal from 30.10.2017 till 09.02.2026   | State/UT-wise details of amount* currently pending as per SAMADHAAN Portal from 30.10.2017 till 09.02.2026   | State/UT-wise details of amount* currently pending as per SAMADHAAN Portal from 30.10.2017 till 09.02.2026   |
|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| S. No.                                                                                                       | State                                                                                                        | Amount (Rs. Crore)                                                                                           |
| 1                                                                                                            | Andhra Pradesh                                                                                               | 241.22                                                                                                       |
| 2                                                                                                            | Assam                                                                                                        | 58.83                                                                                                        |
| 3                                                                                                            | Bihar                                                                                                        | 57.8                                                                                                         |
| 4                                                                                                            | Chandigarh                                                                                                   | 49.92                                                                                                        |
| 5                                                                                                            | Chhattisgarh                                                                                                 | 140.81                                                                                                       |
| 6                                                                                                            | Dadra And Nagar Haveli And Daman And Diu                                                                     | 6.08                                                                                                         |
| 7                                                                                                            | Delhi                                                                                                        | 2893.69                                                                                                      |
| 8                                                                                                            | Goa                                                                                                          | 81.02                                                                                                        |
| 9                                                                                                            | Gujarat                                                                                                      | 1194.33                                                                                                      |
| 10                                                                                                           | Haryana                                                                                                      | 762.58                                                                                                       |
| 11                                                                                                           | Jammu And Kashmir                                                                                            | 117.83                                                                                                       |
| 12                                                                                                           | Jharkhand                                                                                                    | 154.13                                                                                                       |
| 13                                                                                                           | Karnataka                                                                                                    | 93.47                                                                                                        |
| 14                                                                                                           | Kerala                                                                                                       | 151.18                                                                                                       |
| 15                                                                                                           | Madhya Pradesh                                                                                               | 70.84                                                                                                        |
| 16                                                                                                           | Maharashtra                                                                                                  | 2717.85                                                                                                      |
| 17                                                                                                           | Odisha                                                                                                       | 184.91                                                                                                       |
| 18                                                                                                           | Puducherry                                                                                                   | 12.2                                                                                                         |
| 19                                                                                                           | Punjab                                                                                                       | 486.47                                                                                                       |
| 20                                                                                                           | Rajasthan                                                                                                    | 991.66                                                                                                       |
| 21                                                                                                           | Sikkim                                                                                                       | 6.86                                                                                                         |
| 22                                                                                                           | Tamil Nadu                                                                                                   | 795.68                                                                                                       |
| 23                                                                                                           | Telangana                                                                                                    | 308.9                                                                                                        |
| 24                                                                                                           | Uttar Pradesh                                                                                                | 1123.46                                                                                                      |
| 25                                                                                                           | Uttarakhand                                                                                                  | 144.37                                                                                                       |
| 26                                                                                                           | West Bengal                                                                                                  | 1363.73                                                                                                      |
| Grand Total                                                                                                  | Grand Total                                                                                                  | 14209.82                                                                                                     |

*

Amount involved in applications converted into case under various stages of hearing.