Supreme Court Refuses MSMEs’ Appeal on 45-Day Payment Rule

Yesterday, On 6th May, The Supreme Court rejected a plea by MSMEs challenging a provision in the Income Tax Act, reinforcing the 45-day payment rule. Violating this could lead to penalties, and some MSMEs fear larger buyers bypassing them. The court’s decision emphasizes the importance of timely payments for the financial health of smaller businesses, balancing interests in the business ecosystem.