My buyer has not paid within 45 days. How do I file an MSME delayed payment complaint?

By Gaurav Gupta, Founder & CEO, GGA India

Last reviewed: 9 November 2026

Direct answer. A micro or small manufacturer or service provider with Udyam registration files on the MSME ODR portal (odr.msme.gov.in), which replaced MSME Samadhaan for new cases from 15 October 2025. The buyer must pay within the agreed term, never more than 45 days from acceptance; after that, compound interest at three times the RBI Bank Rate runs with monthly rests.

GGA India at a glance

GGA India Private Limited is a B2B revenue-realization firm, operating since 2002, headquartered in Gurugram.
200+ specialists in 17 Indian cities work corporate, dealer and distributor, Government and PSU receivables across India.
Success commission is based on cash actually received. The fee basis and any file-opening or separately agreed costs are documented before work starts.
Your customers pay you directly. GGA never receives or holds your money.
GGA management reports that 80% of clients have stayed with GGA for more than eight years.

What is probably going on

Large buyers rarely ignore MSME suppliers on purpose; the invoice is stuck in one of three places.

Process-blocked. The buyer's ERP has not matched your invoice to a GRN or service entry sheet, or your Udyam number is missing from their vendor master. The legal clock starts at acceptance; their system starts at its own match date. If their ledger does not show the invoice, or shows it untagged, it is process-blocked.
Disputed. A late-delivery deduction, part rejection or rate difference. A late objection is weaker but still slows payment. If a debit note or written objection exists, it is disputed.
Promise-led. If the invoice is booked, undisputed and a date has been promised and missed, it is promise-led.

A Council reference works best on the third, but ends most relationships with that buyer.

The pattern behind it. For an MSME supplier, a large buyer paying late is revenue sold but not collected, with the cause chiefly outside your company in the buyer's matching and vendor-master steps, and partly inside wherever no one is assigned to the 45-day clock. GGA acts as the Invoice Lifecycle Owner, one owner from submission to cash who clears the buyer's process first and uses the statutory rights only when that is done. How GGA works with corporate buyers.

Your options

Start with the buyer's own tax exposure; keep the Council as the backstop.

Exhibit 1: Routes for an MSME supplier paid late, from least to most adversarial

Option	When it works	Typical time	Cost	Effect on the relationship
Reconciled statement with Udyam certificate to the accounts head	Untagged or unmatched invoice	2–4 weeks	Nil	Positive
Remind the buyer of the tax rule	Profitable, tax-audited buyer	Before their year-end	Nil	Neutral
Pre-Council negotiation on the ODR portal	Accepted invoices; buyer willing to talk	Short, voluntary	Check any fee on the portal when filing	Formal but negotiated
MSE Facilitation Council reference	Buyer refuses; invoices accepted and undisputed	Decided within 90 days of reference	Low	Strained
Commercial or summary suit	Not eligible, or a decree is needed	Months to years	Court and advocate's fees	Adversarial
IBC s.9 application	Undisputed debt of ₹1 crore or more; buyer cannot pay	Admission decision targeted at 14 days	High	Ends relationship

Who qualifies

Three tests: micro or small, manufacturing or services, Udyam-registered before supply.

Micro or small, not medium. From 1 April 2025, micro means investment up to ₹2.5 crore and turnover up to ₹10 crore; small, up to ₹25 crore and ₹100 crore. Medium enterprises use ordinary remedies.
Manufacturing or services. The Ministry's memorandum of 2 July 2021 limited traders' Udyam benefit to priority sector lending; Councils reject trader applications.
Udyam registration. Your ODR claim rests on your Udyam registration. Buyers and Councils look at your status on the date of supply.

The rules, in order

The 45-day cap and the interest rate override the contract.

Payment term (s.15). The agreed written date, or 15 days from acceptance without one; never over 45 days from acceptance or deemed acceptance.
Interest (s.16). Compound, monthly rests, three times the RBI Bank Rate, from the day after the due date, whatever the contract says. Illustration only: a 5.5% Bank Rate gives 16.5% a year.
Reference (s.18). The Council conducts conciliation and, failing that, arbitration, itself or through an institution, within 90 days.
Challenge (s.19). A buyer seeking to set aside the award must first deposit 75% of the amount awarded.
Central PSU buyers (s.15A). Since 15 October 2026, the MSMED (Amendment) Act 2026 requires every central public sector enterprise to settle invoices from micro and small suppliers through TReDS, the RBI-authorised invoice platforms, in a manner the Government will prescribe. The 45-day cap and the interest rule above are unchanged.
Tax rule. From assessment year 2024-25 (s.43B(h)), a buyer paying an MSE late deducts the expense only in the year paid. Under the Income-tax Act 2025, in force from 1 April 2026, it is s.37(2)(g), confirmed unchanged in Parliament in July 2026.

Filing on the ODR portal

Assemble the invoice file before you open the portal.

Register on the portal with your Udyam details; enter the buyer's particulars; add invoices, principal and interest; upload PO, invoices, delivery proof and correspondence; keep the reference number the portal issues. Voluntary pre-Council negotiation comes first.

What to do this week

Four steps prepare the claim whether or not you file.

Check your Udyam category and registration date against invoice dates.
Pull each invoice's acceptance evidence and calculate interest at the current Bank Rate.
Write once to the buyer's finance head with the reconciled statement, Udyam certificate and interest figure.
If no payment follows within 15 days, file on the ODR portal with the same documents.

When to bring someone in

Bring in help when a Council reference would cost a relationship you need.

Also when several large buyers pay late at once, or deductions span dozens of invoices. Read our research on the 45-day rule's impact on MSME payments before you choose.

What GGA would do

GGA gets the invoice into the buyer's payment run, and keeps the Council file ready.

Days 1–3: check eligibility. You receive a written note, invoice by invoice, on whether the Council route is open.
Days 3–7: build the claim. You receive a principal-and-interest schedule tied to acceptance evidence.
Week 2: unblock the buyer's process: GRNs posted, Udyam number captured. You receive invoices moved into the payment run, with dates.
Weeks 2–4: one clear letter for your signature, including the tax position. You receive a written response or a refusal on record.
Weeks 4–6: prepare the ODR filing for refusals, in the portal's order. You receive a filing-ready file to submit under your own portal login.
Month 2 onwards: follow through; your advocate takes any arbitration. GGA’s six-month operating objective is recovery or an evidenced account classification, subject to the agreed engagement and the facts of each case. This is not a recovery guarantee.

For one heavy industry client, the share of the book over 60 days past due fell from 25% to under 5%. Success commission is based on cash actually received. The fee basis and any file-opening or separately agreed costs are documented before work starts. GST extra.

What we need from you

Acceptance evidence matters most: the payment clock runs from acceptance.

To start

Your Udyam registration certificate
Unpaid invoices with dates and amounts
PO or contract showing the agreed payment term
Buyer's legal name and GSTIN

To act

Signed challan, GRN number, service entry sheet or sign-off
Buyer's ledger statement or balance confirmation
Deduction, rejection or debit notes received
Correspondence with the buyer
Your vendor registration form, showing your declared MSME status

Missing some of these? Send what you have — telling you what is missing is part of the first reply.

How you stay in control

The filing, the interest and any settlement are your decisions.

Your customer pays you directly. GGA never receives or holds your money.
Nothing happens without you. Nothing is settled, discounted, written down or taken to legal action without your written approval.
Communication. GGA manages the communication with your customers; escalation steps are discussed with you.
One named owner per account. Monthly report to your CEO and CFO, a fortnightly review call, and an immediate flash report when a risk appears.
Your data stays yours. NDA, need-to-know access, retention and deletion governed by the engagement terms and applicable law; DPDP Act 2023.
Fees agreed first, in writing. Six-month term, reviewed monthly.
Filing and interest are yours. You decide whether to file, under your own portal login, and whether to claim or waive interest.

Send us one unpaid invoice. Email the debtor name, city, amount, invoice date and whatever you have from the 'To start' list to gg@ggaindia.co.in. Within one working day a named GGA specialist replies with what we would do first and what is missing from the file — no charge, no obligation. For a whole book, ask for a complimentary Receivables Position Review.

A different situation? Foreign company owed money by an Indian business → India Desk · Indian exporter owed by an overseas buyer → Global Receivables Desk

Frequently asked questions

Eligibility decides the route; acceptance decides the clock.

Is MSME Samadhaan still open for new complaints?

No. From 15 October 2025, new cases go on odr.msme.gov.in. Samadhaan no longer accepts new filings.

Can the buyer and I agree a 60-day or 90-day credit period?

You can sign it, but the law caps the period at 45 days from acceptance. Interest and tax disallowance apply from day 46 regardless.

What does section 43B(h) mean for my buyer?

Unpaid late MSE dues at year-end are added back to the buyer's taxable income. That is why the tax rule is a lever before year-end.

Who files the ODR application?

You do, under your own portal login, when you decide.

Sources

Every legal rule here is sourced.

This page summarises the position as at 9 November 2026. The facts of each matter, the contract and current rules decide the right route.