MSME payment notice generator · Free
MSME delayed payment notice generator
If a business customer hasn't paid within the MSME limit, send them a clear, firm notice. Fill in the invoice details and get a ready letter with the interest worked out, to print or save as PDF.
MSME payment notice generator
Runs in your browser. Nothing you type is sent or saved.
The rule in short
An MSME delayed payment notice tells a buyer that an invoice from a Udyam-registered micro or small enterprise is overdue under Section 15 of the MSMED Act, 2006 (payment within the agreed period, at most 45 days from acceptance, or 15 days with no written agreement), claims compound interest under Section 16 at three times the RBI bank rate, and gives a final date to pay before the supplier files a case on the MSME Samadhaan portal under Section 18.
What the notice says
- Who you are: your business and Udyam registration number
- Which invoice: number, date, amount and the date the buyer accepted the goods or services
- When it was due: the agreed date, capped at 45 days from acceptance (15 days without a written agreement)
- What is owed: the unpaid amount plus interest under Section 16, worked out to the notice date
- What happens next: a date to pay by, and that you may refer the matter to the MSE Facilitation Council through MSME Samadhaan
Before you send it
Check that you were registered on Udyam as a micro or small enterprise when you made the sale, keep proof of delivery and acceptance (a signed challan, e-way bill or the buyer's email), and use the RBI bank rate in force for the period. Send the notice by email and by registered post or courier so you have proof it was received.
If the buyer still doesn't pay
File a case on the MSME Samadhaan portal (samadhaan.msme.gov.in). It goes to your state's Micro and Small Enterprise Facilitation Council, which first tries conciliation and then arbitration (MSMED Act, Section 18). A buyer who wants to challenge an award must first deposit 75% of it (Section 19).
Why buyers take it seriously
Besides the interest, a buyer can deduct a purchase from a micro or small enterprise only in the year it is actually paid if it is paid late (Section 43B(h) of the Income Tax Act, 1961, continued from 1 April 2026 under the Income-tax Act, 2025). Section 23 of the MSMED Act also says the interest itself is never tax-deductible for the buyer.
How to use it
Enter your details and the buyer's
Your business name, Udyam number and address, and the buyer's name and address.
Enter the invoice and dates
Invoice number and date, unpaid amount, the date the buyer accepted the goods or services, the agreed credit period and the RBI bank rate.
Print or save as PDF
Check the letter, tap "Print or save as PDF", sign it and send it by email and registered post.
Frequently asked questions
Is a notice needed before filing on MSME Samadhaan?
The Act doesn't require one, but a written notice often gets you paid without a case, and it shows the Council you gave the buyer a fair chance.
How much interest can I claim in the notice?
Compound interest with monthly rests at three times the RBI bank rate, from the day after the due date until payment (MSMED Act, Section 16). The generator works it out to the notice date.
Can a trader send this notice?
The delayed payment rules protect micro and small manufacturers and service providers registered on Udyam. Trading businesses are generally not covered; check your case with your CA.
How many days should I give the buyer to pay?
Most suppliers give 7 to 15 days. Pick what suits you; the notice names the exact date.
Is this legal advice?
No. The generator fills in a standard format from what you type. For a large or disputed amount, have a lawyer review the notice.
Sources
- MSMED Act, 2006 (Sections 15 to 19 and 23), India Code
- MSME Samadhaan (delayed payment cases)
- Udyam Registration
- RBI: current rates (bank rate)
This page explains the rules in general terms as of November 2026. It is not tax or legal advice; check your case with your CA.
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