FreeComplianceMSME-1: reporting dues to micro and small enterprises
MSME-1 is a half-yearly return in which a company reports amounts it owes to micro and small enterprise suppliers that have been outstanding for more than 45 days from acceptance of goods or services. It exists to push companies to pay small suppliers on time.
Who files it
Every company that receives goods or services from suppliers registered as micro or small enterprises (with Udyam registration), and whose payments exceed 45 days, files MSME-1. Ask suppliers for their Udyam certificates so your records are accurate.
Due dates
| Period | Due |
|---|---|
| April to September | 31 October |
| October to March | 30 April |
The form lists each supplier, amount due, date from which it is due, and the reason for delay.
Why it matters beyond MCA
The MSMED Act requires buyers to pay micro and small suppliers within the agreed period, which cannot exceed 45 days. Late payment attracts compound interest at three times the RBI bank rate. Income-tax law also denies a deduction for such payments until they are actually made. See MSME 45-day payment rule.
Frequently asked questions
This guide is general information, not legal advice. Government fees and procedures change; confirm current figures before you file.
- MSME 45-day payment rule and its income-tax impact
The MSMED Act payment deadline for micro and small suppliers, interest on delay, and the income-tax rule that disallows late payments.
- Udyam registration: MSME registration for companies
How to get Udyam (MSME) registration for a private limited company, documents needed, benefits, and keeping it updated.
- Annual compliance checklist for a private limited company
The yearly filings a private limited company in India must make: AOC-4, MGT-7, ADT-1, DPT-3, MSME-1, ITR, plus DIR-3 KYC every three years.