Tax Events & Reconciliation

MSME Section 43B(h) Disallowance & Payment Planner

Compute the MSMED section 15 payment-date marker and flag potential year-end section 43B(h) principal disallowance for Micro/Small suppliers.

Primary-source trailMethod shown in fullSource checked 14 August 2026. This denotes source verification for the package, not CA/legal review or approval of the individual case.

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What this tool does

Compute the MSMED section 15 payment-date marker and flag potential year-end section 43B(h) principal disallowance for Micro/Small suppliers.

This tool is intentionally limited to suppliers whose Micro or Small enterprise status has been confirmed for the relevant transaction. It does not infer MSME status from a trade name, invoice footer or vendor declaration alone.

MSMED Act section 15 drives the payment-time framework: where there is an agreement, the agreed period cannot exceed 45 days from acceptance/deemed acceptance; without the relevant agreement, the 15-day appointed-day framework matters.

Section 43B(h) then becomes an income-tax timing question. If the principal remains unpaid at year-end after the applicable section 15 deadline, the tool flags a potential current-year disallowance. If actual payment occurred within the same FY, it does not carry the principal as year-end unpaid merely because the payment was late under MSMED.

MSMED delayed-payment interest is a separate issue and is not silently folded into the principal disallowance result. Maintain supplier-status evidence, invoice acceptance/dispute dates, payment trail and the tax computation together.

Inputs explained

Every field below changes the result. They are listed exactly as the form asks for them.

FieldTypeWhat it controls
Invoice / acceptance or deemed-acceptance dateDate
Written agreement fixing payment period?Choice2 options: No — use 15-day marker; Yes
Agreement payment period (days)Number
Invoice principalNumber
Actual payment dateDate
Financial year-endDate

Calculation methodology

Section 15 marker = acceptance/deemed acceptance + 15 days if no agreement, or agreement period capped at 45 days; year-end treatment is then tested separately.

The engine validates required values before calculating and rejects impossible combinations instead of converting them to zero silently. Dates, thresholds and category switches that drive the result remain visible to the user.

Applicable rule and legal basis

The logic on this page is built from the instrument(s) below. Where a rule did not clearly cover a scenario, that scenario is excluded rather than estimated.

Reading and interpreting the result

1. Confirm the classification

The most common error in regulated calculations is not arithmetic; it is putting the facts into the wrong legal or product category. Check the transaction, entity, holding, policy or taxpayer classification before relying on the number.

2. Preserve the evidence trail

Keep statements, acknowledgements, invoices, policy schedules, complaint IDs, tax workings or orders that support the inputs. A number without an evidence trail is difficult to defend in a complaint, return, claim or review.

3. Re-check the effective date

Rules can change. This page records a source-check date, not a fabricated professional review date. If the event belongs to an older period, confirm that the rule version used here applies to that period.

Frequently asked questions

Does this apply to Medium enterprises?

The section 43B(h) issue is framed around sums payable to Micro or Small enterprises; confirm the supplier classification.

Can an agreement specify 60 days?

The section 15 framework caps the agreed period at 45 days for this purpose.

If I pay late but before 31 March, is the invoice still year-end unpaid?

No. This planner distinguishes late MSMED payment from an amount still unpaid at year-end.

Does the normal return-filing due-date relaxation under section 43B solve 43B(h)?

Do not assume so; 43B(h) is specifically linked to the MSMED section 15 timeline.

Does the tool calculate MSMED interest?

No. It focuses on principal deduction timing; delayed-payment interest should be handled separately.

Primary sources & verification trail

Source links below are the authority trail used to design the current rule logic. They remain more important than a generic secondary explainer.

Source checked: 14 August 2026. This denotes source verification for the package, not CA/legal review or approval of the individual case.

Related calculators

These cover adjacent decisions. Each owns a different question, so use the one that matches your actual event.

Related guides and provisions

Assumptions, exclusions and limitations

Disclaimer

This calculator is published for general information and educational purposes only. It is not legal, tax, accounting or investment advice, is not personalised to your circumstances, and is not a substitute for reading the governing instrument or taking professional advice on your facts. Finin2min records a source-check date, which denotes verification of the authority trail and not a professional review or approval of any individual case.

Last reviewed: 15 July 2026

Methodology, assumptions and sources

Scope: Computes interest on delayed GST tax payment under Section 50 of the CGST Act.

Calculation logic

  1. Interest = Tax amount paid late × 18% per annum (or 24% per annum for the specific case of ITC wrongly availed and utilised, per the proviso) × (Number of days delayed ÷ 365).
  2. Interest is computed on the net tax liability payable via the electronic cash ledger (after ITC set-off), consistent with the current interpretation of Section 50(1) as clarified by CBIC circular, from the day after the due date until the date of actual payment.
  3. Where the case involves wrongly availed and utilised ITC, apply the higher 24% rate specifically to that portion, per Section 50(3), while the remaining (non-ITC-related) shortfall continues at 18%.

Inputs and assumptions

Exclusions and edge cases

Sources

Review status: reviewed and approved by CA Nikhil Gupta on 19 July 2026.

© 2026 Finin2min · Educational decision support · Validate assumptions and applicable law.

Guides that use this calculator

Background, worked examples and the rules behind these numbers.