Final Reminder for Corporates: TReDS Portal Registration Deadline is Today!

What’s the Update?

The Ministry of Micro, Small and Medium Enterprises (MSME), in its official notification dated 7th November 2024, has revised the eligibility criteria for mandatory registration on the Trade Receivables Discounting System (TReDS) portal. The new rules require a wider range of companies to onboard by 31st March 2025.

This move aims to strengthen timely payments to MSMEs and improve their working capital through digital invoice discounting.

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What is TReDS?

TReDS (Trade Receivables Discounting System) is the RBI-regulated digital platform that allows MSMEs to get their invoices financed by multiple financiers. It bridges the working capital gap caused by payment delays from large buyers.

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Updated Eligibility Criteria (As per Notification Dated 7 November 2024)

1. Companies with Turnover > ₹250 Crore

• All companies registered under the Companies Act, 2013 having an annual turnover exceeding ₹250 crore (reduced from ₹500 crore) are now mandated to register on any of the TReDS platforms.

2. Central Public Sector Enterprises (CPSEs)

• CPSEs that procure from MSMEs must register, regardless of their turnover.

3. Other Large Buyers (Encouraged)

• Even companies below ₹250 crore turnover that regularly deal with MSMEs are strongly encouraged to register voluntarily to promote prompt payments and supplier trust.

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Why is This Important?

• Ensures compliance with MSME and Income Tax norms (especially Section 43B(h)).
• Facilitates faster payments and boosts credit flow to MSMEs.
• Non-compliance may lead to penalties or procurement restrictions.

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Deadline to Register:

31st March 2025

Approved RBI TReDS Platforms:

• RXIL (Receivables Exchange of India Ltd)
• Invoicemart
• M1xchange

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FAQs

Q1. What if I don’t register by the deadline?
You risk non-compliance under MSMED and Income Tax laws, and could be barred from government procurement opportunities.

Q2. Are MSMEs required to register?
No, but it is highly recommended as it helps MSMEs receive payments earlier via invoice discounting.

Q3. Is TReDS registration free?
Registration is typically free, though transaction fees may apply when using the platform.

Q4. Can private companies register too?
Yes. Any private or public limited company (registered under the Companies Act) meeting the turnover threshold must register.