MSMED Act recoveries allow expedited supplier claims with statutory interest and mandatory deposit on challenged awards.
Suppliers with Udyam registration may file claims before the MSEFC with supporting invoices; the Council attempts conciliation and, failing that, refers matters to arbitration. The Act mandates statutory interest at three times the bank rate with compounding, low filing fees, territorial filing in the seller's jurisdiction, and shared arbitration costs. Challenged arbitral awards require a mandatory deposit of seventy five percent before prosecuting the challenge. (AI Summary)

Input tax credit eligibility clarified for employer provided canteen and catering services; proviso applies to all clause (b) supplies.
The Circular clarifies that the proviso to the input tax restriction provision applies to the whole of clause (b), making input tax credit available where an employer is legally obliged to provide the enumerated goods or services to employees, thereby addressing prior advance rulings that denied credit for third party canteen and catering services and reducing dispute risk subject to remaining questions on the precise scope of statutory employer obligations and interaction with personal use exclusions. (AI Summary)