When is Form MSME-1 filed?
Form MSME-1 is filed by 31 October for the half-year April to September, and by 30 April for the half-year October to March. It reports amounts a company still owes to micro or small suppliers for more than 45 days after the goods or services were accepted. A medium supplier is not on the form. A company with no such outstanding payment does not file for that half-year.
Which half-year uses which date?
The return is half-yearly. It is not part of MGT-7 and it is not an annual accounts form.
| Period | File by |
|---|---|
| April to September | 31 October |
| October to March | 30 April |
The company identifies the supplier, the amount, the date from which it is due, and the reason for the delay. The same dates are on the private company compliance page.
Which suppliers are reported?
The 2019 order covers a supplier registered as a micro or small enterprise. The ceilings that decide those classes are on the Udyam page. A medium enterprise stays outside this return even when the invoice is old. The buyer of goods or services from a micro or small enterprise is expected to pay within the agreed period, and that period cannot exceed 45 days. The form is the company’s report of the delay. It is not the supplier’s Udyam certificate, and filing it does not cancel the delay.
What if the form is late?
Section 405(4) applies when the company fails to comply with the order, or files information that is incorrect or incomplete in a material particular. The company pays ₹20,000 and every officer in default pays ₹20,000, plus ₹1,000 for each day after the first, and each of those penalties stops at ₹3 lakh. How that penalty is applied is on the MSME-1 penalty page. Paying the supplier after the half-year date does not remove an amount that had already crossed 45 days on that date.
Frequently asked questions
Four questions cover who files, a medium supplier, a payment before the due date, and Udyam.
Does every company file MSME-1?
No. The form is for a company that has taken goods or services from a micro or small supplier and still owes that supplier more than 45 days after acceptance. A company with no such outstanding payment does not file for that half-year.
Is a medium supplier reported?
No. The 2019 order covers micro and small suppliers. A medium enterprise is outside the form.
Does paying before the due date erase the half-year?
Paying the supplier does not remove an amount that was already outstanding for more than 45 days on the half-year date. That position is what the return reports.
Is the form the Udyam certificate?
No. Udyam is the supplier’s MSME registration. MSME-1 is the company’s half-yearly report to the Registrar about delayed payments to micro and small suppliers.
Sources
Form MSME-1 is the return under the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019, made under section 405 of the Companies Act, 2013.