The MSME Section 43B(h) Timing Conundrum (Income Tax Act)

Under Section 43B(h) of the Income Tax Act, if an enterprise purchases goods from a supplier who obtained Udyam registration as a Micro or Small enterprise after the date of the invoice, does the disallowance apply if the payment is cleared within 45 days of the invoice date but beyond the financial year-end? More importantly, should the vendor’s MSME status be evaluated on the date of the transaction or the date of actual payment?