MSME-1 – Half-Yearly Return for Outstanding Dues
Who Files This?
Every company that:
Receives supplies of goods or services from Micro or Small Enterprises, and
Whose payments to such enterprises exceed 45 days from the date of acceptance/acknowledgement,
must file Form MSME-1 with the ROC.
Applicability Criteria
Applicable to all companies (private, public, listed, unlisted, LLPs are excluded) that have outstanding dues to MSMEs (as per MSME Act, 2006) for more than 45 days.
Not applicable if:
No transactions with MSMEs, or
Payments made within 45 days.
Why It Matters
This return ensures transparency in trade credit practices, protects MSMEs from delayed payments, and allows the MCA/MSME Ministry to monitor dues.
Process of Filing
Identify suppliers registered as MSMEs.
Check outstanding dues beyond 45 days.
File MSME-1 return through MCA portal.
Filing requires DSC and certification from a practicing professional (CA/CS/CMA).
Due Date
For April–September half year: 31st October.
For October–March half year: 30th April.
Penalty for Non-Compliance
Company: Fine up to ₹25,000.
Officers in Default: Fine between ₹25,000 and ₹3,00,000 or imprisonment up to 6 months.
How LTC Helps
Identifying MSME vendors and payment timelines.
Preparing and filing MSME-1 with accuracy.
Advisory on reducing MSME compliance risks.