# Legal Source Register and Rule Register

Verification date: **2026-11-12**. Status: *official* = read on the official website; *secondary* = official text reproduced or reported elsewhere, to be re-checked on the official site; *convention* = a calculation choice the law does not fix.

## Sources

| ID | Source | Held by | Status | Note |
|---|---|---|---|---|
| S01 | Micro, Small and Medium Enterprises Development Act, 2006 (Act 27 of 2006) - text of ss.1, 2(b), 15, 16, 17, 18, 19, 22, 23, 24 <https://wipolex-resources-eu-central-1-358922420655.s3.amazonaws.com/edocs/lexdocs/laws/en/in/in114en.pdf> | WIPO Lex reproduction of the Gazette text (India Code copy could not be opened from the build environment) | secondary | Re-check against https://www.indiacode.nic.in before relying on exact wording. |
| S02 | Commencement: Notification S.O. 1154(E) dated 18 July 2006 - Act in force from 2 October 2006 <https://wipolex-resources-eu-central-1-358922420655.s3.amazonaws.com/edocs/lexdocs/laws/en/in/in114en.pdf> | WIPO Lex footnote | secondary |  |
| S03 | RBI Handbook of Statistics - Table 44: Major monetary policy rates (Bank Rate), 2003 to Sep 2019 <https://www.rbi.org.in/scripts/PublicationsView.aspx?id=19035> | Reserve Bank of India | official | Used for Bank Rate changes from 03-03-2003 to 07-08-2019. |
| S04 | RBI press releases / MPC resolutions announcing Bank Rate (= MSF rate) on 04-10-2019, 27-03-2020, 22-05-2020, 04-05-2022, 08-06-2022, 05-08-2022, 30-09-2022, 07-12-2022, 08-02-2023, 07-02-2025, 09-04-2025, 06-06-2025, 05-12-2025, 07-10-2026 <https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx> | Reserve Bank of India | official | Individual press release ids are listed in the Rate Master source column. Releases say the change is 'with immediate effect' for the repo rate; Bank Rate/MSF are stated as adjusted in the same decision. |
| S05 | Income-tax Act, 1961, section 43B(h) (inserted by Finance Act, 2023, w.e.f. 1 April 2024 - assessment year 2024-25 onwards) <https://taxguru.in/income-tax/finance-ministry-clarifies-section-43bh-45-day-msme-payment-rule.html> | TaxGuru report of Ministry of Finance reply, Rajya Sabha Unstarred Question No. 242 (21 July 2026) | secondary | Re-check the statute on incometaxindia.gov.in. |
| S06 | Income-tax Act, 2025 - section 37(2)(g) as the corresponding provision; Act in force from 1 April 2026 (tax year 2026-27) <https://taxupdate.in/income-tax/771/cbdt-faq-deep-dive-7-section-43b-43bh-msme-section-37-income-tax-act-2025-actual-payment-tax-audit/> | Practitioner commentary; corroborated by the Rajya Sabha reply in S05 | secondary | Confirm section numbering and effective date on incometaxindia.gov.in. |
| S07 | Ministry of MSME Notification S.O. 1364(E) dated 21 March 2025 (amending S.O. 2119(E) dated 26 June 2020): classification limits from 1 April 2025 <https://taxguru.in/corporate-law/msme-classification-limits-revised-april-12025.html> | TaxGuru reproduction | secondary | Micro: investment Rs 2.5 crore, turnover Rs 10 crore; Small: Rs 25 crore, Rs 100 crore; Medium: Rs 125 crore, Rs 500 crore. Earlier: Rs 1/5, 10/50, 50/250 crore. |
| S08 | Gujarat State Civil Supplies Corporation v. Mahakali Foods Pvt. Ltd., 2022 LiveLaw (SC) 893, SLP (C) 12884/2020, decided 31 Oct 2022 <https://livelaw.in/top-stories/supreme-court-msmed-act-supplier-benefit-date-of-contract-gujarat-state-civil-supplies-corporation-vs-mahakali-foods-pvt-ltd-2022-livelaw-sc-893-212983> | LiveLaw report | secondary | Supplier status judged on the date of the contract; later registration is prospective only. |
| S09 | Silpi Industries v. Kerala State Road Transport Corporation, 2021 SCC OnLine SC 439 <https://www.scconline.com/blog/post/2022/12/14/when-is-the-interest-rate-payable-under-section-16-of-the-msmed-act-2006-applicable/> | SCC Online blog | secondary | MSMED Act overrides the Arbitration Act on interest to the extent of conflict. |
| S10 | Indian Highways Management Co. Ltd. v. Sowil Ltd. (Delhi High Court, Single Judge 21-12-2021; Division Bench 14-02-2022) <https://www.scconline.com/blog/post/2022/12/14/when-is-the-interest-rate-payable-under-section-16-of-the-msmed-act-2006-applicable/> | SCC Online blog | secondary | ss.15-17 apply independently of s.18 proceedings. Report states SLP (C) 14233/2022 was pending in the Supreme Court; current status not verified. |

## Rules

| Rule ID | Description | Provision | Effective from | Effective to | Source | Verified | Version | Status | Implementation note |
|---|---|---|---|---|---|---|---|---|---|
| R-MSMED-2B | Appointed day is the day immediately after 15 days from the day of acceptance or deemed acceptance. | MSMED Act 2006, s.2(b) | 2006-10-02 | open | S01,S02 | 2026-11-12 | 1.0 | secondary | Last day for payment without a written agreement = acceptance date + 15 days; interest starts the next day. |
| R-MSMED-2B-EXPL | Day of acceptance is the date of actual delivery or rendering of service; if a written objection is made within 15 days, it is the day the supplier removes the objection. Deemed acceptance applies when no written objection is made in 15 days. | MSMED Act 2006, s.2(b) Explanation | 2006-10-02 | open | S01 | 2026-11-12 | 1.0 | secondary | If an objection is recorded within 15 days and is not yet removed, acceptance is pending and no interest runs. Objections later than 15 days are ignored with a warning. |
| R-MSMED-15A | Buyer must pay on or before the date agreed in writing, which can never exceed 45 days from acceptance or deemed acceptance. | MSMED Act 2006, s.15 and proviso | 2006-10-02 | open | S01 | 2026-11-12 | 1.0 | secondary | Written agreement flag + credit days. Days above 45 are reduced to 45 with a warning (MT-LEG-004). |
| R-MSMED-16 | On failure to pay as required by s.15, buyer is liable to pay compound interest with monthly rests at three times the Bank Rate notified by the RBI, notwithstanding any agreement or law. Interest runs from the appointed day or from the day after the agreed date. | MSMED Act 2006, s.16 | 2006-10-02 | open | S01,S03,S04 | 2026-11-12 | 1.0 | secondary | Annual rate = 3 x Bank Rate. Interest accrues on principal plus capitalised interest, capitalised at monthly rests. |
| R-MSMED-17 | Buyer must pay the amount with interest as provided in s.16. | MSMED Act 2006, s.17 | 2006-10-02 | open | S01 | 2026-11-12 | 1.0 | secondary | Used in the demand notice. |
| R-MSMED-18 | Either party may refer a dispute to the Micro and Small Enterprises Facilitation Council; the Council must decide within 90 days of the reference. | MSMED Act 2006, s.18(1)-(5) | 2006-10-02 | open | S01 | 2026-11-12 | 1.0 | secondary | Referred to in the demand notice as the next remedy. |
| R-MSMED-19 | An application to set aside a Council award is entertained only if the buyer deposits 75% of the awarded amount. | MSMED Act 2006, s.19 | 2006-10-02 | open | S01 | 2026-11-12 | 1.0 | secondary | Informational, shown in notice. |
| R-MSMED-22 | Buyers whose accounts are audited must disclose unpaid principal and interest, interest paid, interest due and further interest remaining due in the annual statement. | MSMED Act 2006, s.22 | 2006-10-02 | open | S01 | 2026-11-12 | 1.0 | secondary | The Interest Calculator report shows the figures needed for the disclosure; the application does not prepare the statement. |
| R-MSMED-23 | Interest payable or paid under the Act is not deductible in computing income under the Income-tax Act. | MSMED Act 2006, s.23 | 2006-10-02 | open | S01 | 2026-11-12 | 1.0 | secondary | Reports state that interest under s.16 must be added back by the buyer. Check the position under the Income-tax Act, 2025 with a professional. |
| R-MSMED-24 | Sections 15 to 23 override inconsistent provisions of other laws. | MSMED Act 2006, s.24 | 2006-10-02 | open | S01 | 2026-11-12 | 1.0 | secondary | Basis for ignoring a lower contractual interest rate. |
| R-ITA-43BH | A sum payable to a micro or small enterprise beyond the time limit in s.15 MSMED Act is deductible only in the year of actual payment. There is no relief for payment before the return due date. | Income-tax Act 1961, s.43B(h) (Finance Act 2023) | 2024-04-01 | 2026-03-31 | S05 | 2026-11-12 | 1.0 | secondary | Applies from assessment year 2024-25, i.e. expenses of financial year 2023-24 onwards, up to FY 2025-26 under the 1961 Act. |
| R-ITA25-37-2-g | Corresponding provision in the Income-tax Act, 2025 for tax years from 2026-27. | Income-tax Act 2025, s.37(2)(g) | 2026-04-01 | open | S05,S06 | 2026-11-12 | 1.0 | secondary | The Checker names this section for FY 2026-27 onwards. Section numbering must be confirmed on the official text. |
| R-CLASS-2020 | Classification by investment in plant and machinery/equipment and turnover: Micro up to Rs 1 crore and Rs 5 crore; Small up to Rs 10 crore and Rs 50 crore; Medium up to Rs 50 crore and Rs 250 crore. | MSME Ministry S.O. 2119(E) dated 26-06-2020 | 2020-07-01 | 2025-03-31 | S07 | 2026-11-12 | 1.0 | secondary | Classification helper only. The Udyam certificate prevails. |
| R-CLASS-2025 | Micro up to Rs 2.5 crore and Rs 10 crore; Small up to Rs 25 crore and Rs 100 crore; Medium up to Rs 125 crore and Rs 500 crore. | MSME Ministry S.O. 1364(E) dated 21-03-2025 | 2025-04-01 | open | S07 | 2026-11-12 | 1.0 | secondary | Classification helper only. |
| R-CASE-MAHAKALI | The supplier must be a registered micro or small enterprise on the date of the contract to claim MSMED Act benefits; later registration operates only for later supplies. | Gujarat State Civil Supplies Corp. v. Mahakali Foods (SC, 31-10-2022) | 2022-10-31 | open | S08 | 2026-11-12 | 1.0 | secondary | If the Udyam registration date is after the contract/supply date, statutory interest is blocked (MT-LEG-010). For s.43B(h) the same test is applied by analogy and flagged for professional review. |
| R-CASE-SILPI | Section 16 interest overrides conflicting arbitration or contract terms. | Silpi Industries v. KSRTC (SC, 2021) | 2021-01-01 | open | S09 | 2026-11-12 | 1.0 | secondary | Supports use of 3 x Bank Rate despite lower agreed rates. |
| R-CASE-SOWIL | Sections 15-17 operate independently of proceedings before the Facilitation Council. | Indian Highways Management v. Sowil (Delhi HC, 2021-2022) | 2021-12-21 | open | S10 | 2026-11-12 | 1.0 | secondary | Informational. A Supreme Court appeal was reported pending; status unverified. |
| R-CONV-DAYS | CONVENTION. Day count: simple daily accrual on Actual/365 for each day from the day after the last day for payment up to and including the date of payment or calculation. | Calculation convention (not stated in the Act) | - | open | - | 2026-11-12 | 1.0 | convention | A 366-day year is also divided by 365. Show the choice to the user and let a professional decide. |
| R-CONV-REST | CONVENTION. Monthly rests: default calendar month-end; optional anniversary of the interest start date. Interest is rounded to the nearest paise when it is posted: at each monthly rest, part payment, Bank Rate change and the calculation date. | Calculation convention | - | open | - | 2026-11-12 | 1.0 | convention | Rest basis is selectable on the Settings panel. |
| R-CONV-RATE | CONVENTION / DISPUTED. Which Bank Rate applies over a long delay: default is the rate in force on each day (period-wise); alternative is the rate in force on the first day of interest. | Interpretation of s.16 'three times the bank rate notified by the Reserve Bank' | - | open | S10 | 2026-11-12 | 1.0 | convention | Both are available. Courts and tribunals may take either view; obtain professional advice before relying on one. |
| R-CONV-APPROP | CONVENTION. Part payments are applied first to accumulated interest and then to principal (default), or principal first (option). | Calculation convention (see also ss.59-61 Indian Contract Act, 1872) | - | open | - | 2026-11-12 | 1.0 | convention | Selectable per company. |
| R-CONV-BASE | CONVENTION / DISPUTED. Interest base: the full amount due on the invoice including GST, less any amount the user excludes. Some tribunals exclude GST or tax withheld. | Interpretation of 'amount' in s.16 | - | open | - | 2026-11-12 | 1.0 | convention | An 'amount excluded from interest' field is provided on every invoice. |
| R-CONV-43BH-BASE | CONVENTION / DISPUTED. Section 43B(h) disallowance is computed on the taxable value (GST excluded) by default; option to use the full invoice value. | Interpretation of 'sum payable' | - | open | S05 | 2026-11-12 | 1.0 | convention | Selectable on the Checker settings. |
| R-CONV-TRADER | CONVENTION / DISPUTED. Whether trading (resale) suppliers fall within s.43B(h) and s.16 is not settled in the sources read. Default: treated as not covered, with a visible warning; option to include. | Interpretation of 'micro or small enterprise' (s.7 MSMED Act) | - | open | S06 | 2026-11-12 | 1.0 | convention | Warning MT-LEG-011. |

## RBI Bank Rate series used

| Effective from | Bank Rate % | Interest rate (3x) % | Source |
|---|---|---|---|
| 2003-03-03 | 6.25 | 18.75 | RBI Handbook of Statistics, Table 44 (https://www.rbi.org.in/scripts/PublicationsView.aspx?id=19035) |
| 2003-04-29 | 6.00 | 18.00 | RBI Handbook of Statistics, Table 44 |
| 2012-02-13 | 9.50 | 28.50 | RBI Handbook of Statistics, Table 44 |
| 2012-04-17 | 9.00 | 27.00 | RBI Handbook of Statistics, Table 44 |
| 2013-01-29 | 8.75 | 26.25 | RBI Handbook of Statistics, Table 44 |
| 2013-03-19 | 8.50 | 25.50 | RBI Handbook of Statistics, Table 44 |
| 2013-05-03 | 8.25 | 24.75 | RBI Handbook of Statistics, Table 44 |
| 2013-07-15 | 10.25 | 30.75 | RBI Handbook of Statistics, Table 44 |
| 2013-09-20 | 9.50 | 28.50 | RBI Handbook of Statistics, Table 44 |
| 2013-10-07 | 9.00 | 27.00 | RBI Handbook of Statistics, Table 44 |
| 2013-10-29 | 8.75 | 26.25 | RBI Handbook of Statistics, Table 44 |
| 2014-01-28 | 9.00 | 27.00 | RBI Handbook of Statistics, Table 44 |
| 2015-01-15 | 8.75 | 26.25 | RBI Handbook of Statistics, Table 44 |
| 2015-03-04 | 8.50 | 25.50 | RBI Handbook of Statistics, Table 44 |
| 2015-06-02 | 8.25 | 24.75 | RBI Handbook of Statistics, Table 44 |
| 2015-09-29 | 7.75 | 23.25 | RBI Handbook of Statistics, Table 44 |
| 2016-04-05 | 7.00 | 21.00 | RBI Handbook of Statistics, Table 44 |
| 2016-10-04 | 6.75 | 20.25 | RBI Handbook of Statistics, Table 44 |
| 2017-04-06 | 6.50 | 19.50 | RBI Handbook of Statistics, Table 44 |
| 2017-08-02 | 6.25 | 18.75 | RBI Handbook of Statistics, Table 44 |
| 2018-06-06 | 6.50 | 19.50 | RBI Handbook of Statistics, Table 44 |
| 2018-08-01 | 6.75 | 20.25 | RBI Handbook of Statistics, Table 44 |
| 2019-02-07 | 6.50 | 19.50 | RBI Handbook of Statistics, Table 44 |
| 2019-04-04 | 6.25 | 18.75 | RBI Handbook of Statistics, Table 44 |
| 2019-06-06 | 6.00 | 18.00 | RBI Handbook of Statistics, Table 44 |
| 2019-08-07 | 5.65 | 16.95 | RBI Handbook of Statistics, Table 44 |
| 2019-10-04 | 5.40 | 16.20 | RBI press release / MPC resolution 4 Oct 2019 (prid 48319) |
| 2020-03-27 | 4.65 | 13.95 | RBI press release / MPC resolution 27 Mar 2020 (prid 49659) |
| 2020-05-22 | 4.25 | 12.75 | RBI press release / MPC resolution 22 May 2020 |
| 2022-05-04 | 4.65 | 13.95 | RBI press release / MPC resolution 4 May 2022 (prid 53651) |
| 2022-06-08 | 5.15 | 15.45 | RBI press release / MPC resolution 8 Jun 2022 (prid 53832) |
| 2022-08-05 | 5.65 | 16.95 | RBI press release / MPC resolution 5 Aug 2022 (prid 54148) |
| 2022-09-30 | 6.15 | 18.45 | RBI press release / MPC resolution 30 Sep 2022 (prid 54465) |
| 2022-12-07 | 6.50 | 19.50 | RBI press release / MPC resolution 7 Dec 2022 (prid 54817) |
| 2023-02-08 | 6.75 | 20.25 | RBI press release / MPC resolution 8 Feb 2023 (prid 55178) |
| 2025-02-07 | 6.50 | 19.50 | RBI press release / MPC resolution 7 Feb 2025 (prid 59692) |
| 2025-04-09 | 6.25 | 18.75 | RBI press release / MPC resolution 9 Apr 2025 (prid 60176) |
| 2025-06-06 | 5.75 | 17.25 | RBI press release / MPC resolution 6 Jun 2025 (prid 60605) |
| 2025-12-05 | 5.50 | 16.50 | RBI press release / MPC resolution 5 Dec 2025 (prid 61749) |
| 2026-10-07 | 5.75 | 17.25 | RBI press release / MPC resolution 7 Oct 2026 (prid 63742) |