Central government · Ministry of MSME

Micro, Small and Medium Enterprises Development (Amendment) Act 2026 MSMED Amendment 2026

The 2026 changes to the MSME law that make registration free and voluntary in law, force central public sector companies to pay MSMEs through TReDS, and set time limits for payment disputes, brought into force in stages.

Last updated on 5 November 2026

Status: Open
Run by: Ministry of MSME

Official website (external site)

What you get

In force from 15 October 2026, central public sector enterprises must settle invoices for goods and services bought from MSMEs through an RBI-authorised TReDS platform
In force from 15 October 2026, MSMEs are classified by both investment and turnover, and the national registration platform is free and voluntary
In force from 15 October 2026, states may set up more than one Facilitation Council, and penalties for buyers who do not disclose unpaid dues move to a warning first, then a penalty, then a fine
From 15 December 2026, new rules on who sits on Facilitation Councils
Not yet in force, mediation to finish within 90 days, referral to arbitration within 30 days, and an award within 90 days of pleadings closing
Not yet in force, settlements and awards recoverable as arrears of land revenue through the District Collector, and courts to release at least 50% of the award to the supplier when a challenge is pending more than six months

Who can apply

Businesses that are already running.
Micro, small and medium enterprises.

Figures you may see elsewhere

One law firm article says the Act came into force on 13 August 2026. That is the date of assent and publication. The gazette notification shows the provisions start on 15 October and 15 December 2026, with sections 8 to 10 still waiting.

Worth knowing

Partly in force. Act No. 16 of 2026. Gazette notification S.O. 5575(E) of 12 October 2026 brings sections 2 to 7, 11 and 13 to 17 into force on 15 October 2026 and section 12 on 15 December 2026. Sections 8 to 10 have no date yet.

Where we found this

Gazette of India, S.O. 5575(E), commencement of the MSMED (Amendment) Act 2026, 12 October 2026 (external site) Official
PIB, MSMED (Amendment) Bill 2026 passed by Parliament, 7 August 2026 (external site) Official announcement
PIB backgrounder on the MSMED (Amendment) Bill 2026, 11 August 2026 (external site) Official announcement
MSMED (Amendment) Bill 2026 as introduced (external site) Official
TaxGuru, sections effective from 15 October and 15 December (external site) Other source

An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.