Form MSME 1 - MSME Half Yearly Return Filing

The Ministry of Corporate Affairs (MCA) issued a notification on 22 January 2019 that specific companies having outstanding dues to the MSME (Micro, Small and Medium) enterprises have to file the particulars of all current outstanding dues in Form MSME-1 with the ROC (Registrar of Companies). 

Companies need to identify if their suppliers are registered or not under the MSME Act, 2006. When the suppliers are registered under the MSME Act, and there are outstanding dues by a company to the MSME suppliers, it must file Form MSME-1. 

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File your MSME 1 Return with the help of Team TAXAJ

Created by potrace 1.15, written by Peter Selinger 2001-2017


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Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered

  • Filing of Form MSME-1
Who Should Buy

  • Companies want to comply to the MSME Norms by filing their half yearly return
How It's Done
  • Purchase the plan
  • Share the documents/details as requested by us.
  • We shall prepare the documents as required & get signed by you.
  • Prepare the form as applicable & file it.
Documents Required
  • CIN and PAN of the company
  • Name, address and e-mail of the company
  • Name and PAN of the suppliers
  • Outstanding amount due against the supply of goods or services
  • Date from which the amount is due
  • Reason for delay in payment of the amount due

Who should file Form MSME-1?

Specified companies should file Form MSME-1 when payments are due to MSME for more than 45 days from the date of acceptance of the services or goods, along with the reason for its delay. Specified companies are companies- 

  • That have obtained goods or services from the MSME. 
  • Whose payments to the MSMEs exceed 45 days from the date of acceptance or deemed acceptance of the goods or services.

Purpose of filing of Form MSME-1

The MSME Development Act, 2006 (MSMED) strengthens the provisions relating to delayed payments to the MSMEs by providing the maximum credit period and penal interest for delay in payment. When there is a delay in payment by the companies, they must mention the reason for such delay in their statement of accounts.

Section 15 of the MSMED Act states that where the suppliers render services or supply goods to any buyer, the buyers should make payment on or before the agreed date between them and the suppliers. When there is no agreed date for payment between the MSME supplier and buyer, the buyer must make payment before the appointed date. The appointed date means fifteen days from the date of acceptance.

Section 15 also states that the period of credit granted by the seller should not exceed 45 days from the acceptance date or date of deemed acceptance. To strengthen this provision further, the MCA introduced Form MSME-1. Every company that has obtained services or goods from an MSME supplier and has outstanding payment for more than 45 days must disclose it to the ROC by filing the MSME-1 return. 

The MSME-1 is a half-yearly return that the specified companies need to file regarding their outstanding payments to the MSME. In this manner, the ROC can keep track of the companies that have outstanding dues towards MSMEs and the MSME suppliers who need to receive payments.

However, companies have to file this return only when they have payments outstanding for more than 45 days to the MSME supplier. The companies need not file a ‘Nil MSME-1 Return’ when there are no outstanding amounts with the MSME suppliers.

Due Date for filing Form MSME-1

MSME-1 is a half-yearly return that the specified companies must file with the MCA. Below are the due dates for filing Form MSME-1:

Due DatePeriod for which MSME-1 is filed
30 AprilFor October-March period
31 OctoberFor April-September period

Non-Compliance for filing of Form MSME-1

Non-compliance with filing MSME-1 by the specified companies will attract a penalty under Section 405(4) of the Companies Act, 2013. As per Section 405(4), if any company fails to file MSME-1, the company and every officer in default will be liable to a penalty of Rs.20,000. In case of continuing failure, the company and every officer in default will be liable for a further penalty of Rs.1,000 for each day the failure continues, subject to a maximum of Rs.3 lakh.