MSE’s Chemical Industry Has A Fall I Orders Due To 45-Day Payment Rule

MSE (Micro and Small Enterprises) saw a fall in the new orders in its chemical industry. The main reason behind the order shrinking is the launch of the new income tax act after which the buyer will make the payment within 45 days. We will share details about the MSE (Micro and Small Enterprises) situation below. The new rule led to a 90% fall in the chemical industry. It is impacting the MSEs on a large scale.

MSE (Micro And Small Enterprises) Faces Decline In The Orders Due To New 45-Day Payment Rule

MSE (Micro and Small Enterprise) faces a decline in the order after the new 45-day payment rule. The chemical industry is facing a 90% decline in Gujarat. The chemical industry of Gujarat is famous all over the country. However, the orders are faking. As per the new 45-day payment rule, all the buyers from the MSE have to make the payment to them within 45 days of the purchase.

The government took this step to promote the MSE (Micro and Small Enterprises) and made their payments available to them on time. As per the rule, the buyer has to make the payment within 45 days of the purchase from the MSE. Thus, it hurt the businesses of all MSEs (Micro and Small Enterprises).

Thus, the impact of the rule is showing opposite results than expected. Everyone is buying from the Medium and Large Enterprises. The reason behind the shift is that they don’t have to make payments within 45 days of the purchase to medium and large enterprises. Thus, the buyers are either buying from the importers or the medium and large enterprises.

The orders for the medium and large-scale chemical industry increased. This is affecting the business of small enterprises on a large scale. The outcome is shared with the government. It is taking its full initiative to change it in the favor of the small and micro enterprises again. However, nothing can be said at the moment.

To conclude, MSE has a shrink in the new orders in February and March due to the implementation of the 45-day payment rule. Thus, there is a need for all the buyers to pay the amount of purchase within 45 days. Otherwise, the MSE will have all the rights to take any action for the payments. Due to this new rule, the buyers are either preferring importers or medium and large enterprises for the purchase to avoid the 45-day payments.