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Payment Terms Legislation In India

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India

Please see below for a summary of payment terms in India and the various industries across which payment term legislation appears. You can also download a summary of all Indian payment terms by clicking the button below.
Industries Laws Codes Notes
Government
Comm_terms_law
Construction
Manufacturing
Retail_agriculture
Services

LAWS

The Micro, Small and Medium Enterprises Development (MSMED) Act 2006 limits payment terms to SMEs to 45 days.

  • Construction
  • Manufacturing
  • Retail_agriculture
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NOTES

The Indian government’s e-marketplace for government procurement currently requires payment of suppliers within 10 days. The government is also currently debating the introduction of 30 days terms for all other government procurement.

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