All About ROC Form MSME-1

The Ministry of Corporate Affairs (MCA) in a notification issued in 2019 specified that certain companies with outstanding dues to MSME (Micro, Small, and Medium) enterprises to file the particulars of all current outstanding dues in Form MSME-1 with the ROC.

Form MSME-1 is a half-yearly form that the companies have to file with the ROC when there are outstanding dues to the MSME suppliers.

The major goal of filing Form MSME-1 is to ensure that micro and small businesses receive timely payments from their clients. The form serves as a compliance instrument under the MSMED Act, 2006, which promotes transparency and accountability in company activities.

The form is filed with ROC and the Filing fee is Nil. This is applicable w.e.f. 15/07/2024.

Important Date

Key Details of Changes

Form to be filed w.r.t amount payable to Micro or Small Enterprises, having:

• Outstanding balance for period of more than 45 days from the date of acceptance of goods or services.
• The amount payable is paid after 45 days.
• Even in case of no Outstanding balance as at respective half years, reporting has to be done if during the half year amount is paid after 45 days.

What to report in MSME Form-1?

• Name and PAN of the Supplier;
• Amount paid within 45 days;
• Amount paid after 45 days;
• Amount Outstanding for 45 days or less;
• Amount Outstanding for more than 45 days;
• Reason for delay in Payment.

Non-Compliance of MSME-1

• Company and officer in default are liable to the penalty of Rs. 20000.
• A penalty of Rs. 1000 per day; a maximum of Rs. 300000 is applicable to the Company + officer in default in case of continuous failure.