The Goa chapter of Laghu Udyog Bharati recently celebrated its Foundation Day, marking a significant milestone in promoting entrepreneurship and empowering MSMEs. The event featured a talk by chartered accountant Maheshwar Marathe, who discussed the new classification criteria for MSMEs, the objectives of the MSMED Act, online dispute resolution (ODR), and financial schemes like ADEETIE.
Recent developments, especially those in 2024 and 2025, carry substantial implications for Goa’s MSME sector, home to over 72,000 Udyam-registered enterprises ranging from food processing and tourism to packaging and light engineering. Many digitally forward MSMEs in Goa are already adopting e-commerce, digital GST systems, and portals like GEM and TREDS.
A key amendment is the inclusion of Section 43B (h) in the Income Tax Act, effective from April 1, 2024. It mandates that any payment to registered MSMEs must be made within the prescribed period under the MSMED Act—45 days—failing which the expense will be disallowed for tax deduction in the buyer's hands.
In Budget 2025, Finance Minister Nirmala Sitaraman announced enhanced limits to MSMEs, accounting for inflation and rising input costs. The investment limit has increased 2.5 times and the turnover limit twice, with micro units now classified as turnover less than Rs 10 crore, small units less than Rs 100 crore, and medium units less than Rs 500 crore.
In January 2025, the NBCC India- Supreme Court's judgement said that prior Udyam registration was not a precondition for initiating dispute resolution under section 18 of the MSMED Act. This ruling empowers even micro unregistered units in Goa, such as toddy tapers, home-based FBOs or artisans, to approach the MSME Facilitation Council (MSEFC) in case of payment disputes and will widen access to justice for informal or semi-formal Goan businesses, especially those in remote talukas, where formal registration is still catching up.
If a payment is overdue, the MSME can first try resolving it directly with the buyer. If that fails, they may file a complaint with DIC Goa or via the MSME Samadhaan portal, both of which are mandated to act promptly. Companies must disclose payments pending beyond 45 days in their half-yearly MCA filings and annual reports, and auditors must report and disallow such unpaid dues as of March 31 for tax purposes.
MSME Samadhaan is a fully online redressal platform for delayed payments that requires no offline submissions. Upon uploading the invoice and dispute details, the buyer is notified via email and given 15 days to clear dues. The District Industries Centre (DITC- Goa) acts as the authority, and since notices are issued on government letterhead, they carry substantial weight. If payment isn't made, the case proceeds to conciliation and hearing, potentially ending with a DIC order imposing up to three times the bank interest on the outstanding amount.
Under the RAMP (Raising and accelerating MSME performance), the government has operationalised ODR (Online Dispute Resolution). ODR combines AI tools with digital mediation and arbitration, ensuring low-cost, time-bound mediation of commercial disputes, without going to courts. This initiative involves awareness about this scheme, the ability to use the internet, and being data compliant. According to a study, ‘Global Alliance by Mass enterprises (GAME) report, Rs 10.9 lakh crore or 5.9% of India’s GDP is locked in delayed payment, and 80% is owed to micro and small enterprises, with MCA now capturing this data.
The ADEETIE scheme offers MSMEs a 5% (Micro & Small) and 3% (Medium) interest subvention on energy-efficient loans (Rs 10 lakh/ Rs 15 crore) for up to three years. It also provides handholding support for energy audits, technology adoption, and financial documentation to boost sustainability and competitiveness.
The central government has identified 14-15 sectors (bricks, textiles, steel rolling, food processing, etc) where it wants to promote energy-efficient manufacturing. Goa has one such cluster, the pharma sector in Margao. Any MSME that intends to bring in new investment in the next three years will be given an interest subvention of up to 5% (a discount on the interest on borrowing) of up to Rs 15 crore.
Timely payment to Micro and Small enterprises will improve their profitability by 15%, helping enhance liquidity and reduce working capital stress. This is especially critical in Goa, where seasonal fluctuations strain small businesses. As implementation rolls out, industry associations, local governments, and trade bodies must create awareness, and ensure the benefits reach the last-mile entrepreneur, and that Goa’s MSMEs are well-positioned to lead the next wave of sustainable economic growth in the State.
(The writer is Laghu Udyog Bharati, Goa State President, Assocham Empowerment Chair, and a member of the GCCI Managing Committee)
