What is MSME Form 1 (half-yearly)?

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerMSME Form 1 is a half-yearly return a company files with the ROC reporting outstanding dues to MSME suppliers that are pending beyond 45 days. It’s filed twice a year (by 30 April and 31 October), and is meant to enforce timely payment to small suppliers. It applies only if you have such overdue MSME dues.

What it reports

MSME Form 1 is the counterpart to the MSME delayed-payment protection — companies must disclose amounts owed to MSME suppliers that remain unpaid beyond 45 days, with the amount and reasons for delay. It puts late payments to small vendors on the public record.

Who files and when

A company with such overdue MSME dues files MSME Form 1 twice a year — by 30 April (for October–March) and 31 October (for April–September). If you have no dues outstanding beyond 45 days to MSME suppliers, the filing isn’t required for that half. Confirm the current periods and applicability.

A worked example

Example: a company owes a registered MSME vendor ₹3 lakh that’s been outstanding for 60 days at the half-year end — it must report this in MSME Form 1. A company that always pays MSME suppliers within 45 days has nothing to file. The form effectively nudges buyers to pay small vendors on time, complementing DPT-3 in the disclosure regime. Our team can track and file it.

Compliance

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This answer is general information for businesses, not professional advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.