What is MSME-1?
Form MSME-1 is a half-yearly return mandated by the MCA to protect the financial interests of Micro and Small Enterprises. Through this form, large corporate buyers are forced to publicly disclose any outstanding dues they owe to MSME suppliers that have been delayed beyond the statutory limit of 45 days.
Who Must File MSME-1?
All "Specified Companies"—defined as any company that buys from an MSME and whose payment to that MSME exceeds 45 days from the date of acceptance of goods or services—must file this return.
MSME-1 Due Date & Timeline
The form is filed twice a year. For the half-year ending September 30, the due date is October 31. For the half-year ending March 31, the due date is April 30.
Consequences of Late Filing MSME-1
Interestingly, the MCA portal does not charge a standard multiplier late fee for MSME-1. However, non-compliance is extremely dangerous. Defaulting companies face adjudication under Section 450 of the Companies Act, resulting in a base fine of ₹10,000, plus a continuing penalty of ₹1,000 per day (capped at ₹2 Lakhs) for the company and its directors.