Since the Section 43B(h) rule, businesses need to know which suppliers are registered micro or small enterprises, because late payment to them can cost you a tax deduction. The obvious question is: how do I check? The honest answer surprises most people.
There is no public lookup
You cannot search the government portal by a supplier's name, PAN, or GSTIN and see their MSME status. The Udyam portal only verifies a registration if you already have the supplier's Udyam number. A PAN-based check sends an OTP to the supplier's own phone or email, so only the supplier can complete it.
In practice, this means the information has to come from the supplier, or from your own records.
A practical way to check
Work through these steps in order:
- Check your accounting software. Many accounting packages let you store a supplier's Udyam number in the party ledger. See what is already recorded.
- Check their invoices. Registered suppliers often print their Udyam number on invoices.
- Ask in writing. For the rest, send a short request asking each supplier to confirm whether they are Udyam-registered and, if so, to share the certificate. Keep the replies on file.
- Verify the numbers you get. On the Udyam portal, use the number to confirm three things: the category (micro or small counts, medium does not), the activity (manufacturing or services count, trading does not), and the registration date.
Suppliers you can set aside
- Overseas suppliers. Udyam registration needs an Indian Aadhaar, so foreign suppliers cannot be registered. Import bills are outside the rule.
- Traders. Even if registered, traders are excluded from this rule.
- Medium enterprises. Not covered.
A simple tracker with columns for Udyam number, category, activity, and status, updated once a year, keeps you ready for your tax audit.
Need help sorting your creditor list into MSME and non-MSME? Get a quote and we will build the tracker and work out any disallowance for you.
Need help with this?
Our accounting and bookkeeping service covers exactly this. Free first consultation, and a clear quote before any work starts.
Keep reading
Pay your small suppliers in time, or lose the tax deduction (Section 43B(h))
Pay micro and small suppliers within 15 or 45 days, or the expense moves to the year you pay. Who is covered and what to do.
Read article Income taxTDS on common business payments: the limits that changed in 2025-26
The thresholds and rates for the payments that come up most, including the new Section 194T for partners.
Read article