File MSME explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
To file MSME-1, identify supplier dues to micro and small enterprises outstanding beyond 45 days as on the half-year end, capture the amount and reasons for delay, and file the half-yearly return with the ROC by 31 October (Apr–Sep) and 30 April (Oct–Mar) under Section 405 of the Companies Act, 2013.
Overview
MSME-1 is a half-yearly return through which companies disclose outstanding payments to micro and small enterprise suppliers that have crossed 45 days. It supports the MSMED framework that protects small vendors from delayed payments.
When It Is Required & Legal Basis
The return flows from an MCA order under Section 405 of the Companies Act, 2013. Every company that buys goods or services from micro or small enterprises and has payments outstanding beyond 45 days from the date of acceptance must file MSME-1 for each half-year in which such dues exist.
Step-by-Step Process
- Identify MSME suppliers. Collect Udyam registration details from vendors to confirm micro/small status.
- Ageing of payables. As on 30 September and 31 March, extract dues outstanding beyond 45 days from acceptance.
- Determine reasons for delay. Record the reason for each delayed payment as required by the form.
- Fill Form MSME-1. Enter supplier name, PAN, amount outstanding and period of delay.
- File with the ROC. Upload MSME-1 on the MCA portal within the due date for the half-year.
Forms, Attachments & Fees
| Period | Form | Due Date |
|---|---|---|
| April – September | MSME-1 | 31 October |
| October – March | MSME-1 | 30 April |
There is no MCA filing fee for MSME-1 within the due date; late filing attracts penalties rather than additional fee slabs.
Timeline & Due Dates
MSME-1 is filed twice a year: by 31 October for the April–September half-year and by 30 April for the October–March half-year. Only amounts outstanding to micro and small enterprises beyond 45 days as on the respective half-year end are reported.
Penalty for Delay / Non-compliance
Under Section 405(4), if a company fails to file MSME-1 or files incorrect information, the company is liable to a penalty of up to ₹20,000 and every officer in default to up to ₹20,000, with a further ₹1,000 per day for continuing default subject to a maximum of ₹3,00,000.
Practical Tips
- Ask all vendors for their Udyam registration number upfront so you can tag micro/small suppliers automatically.
- Run the payables ageing precisely as on 30 September and 31 March to avoid missing borderline cases.
- File a nil MSME-1 only where you are confident there are no reportable dues — keep the working to support it.