Missed MSME-1 Filing? Get Ready to Pay Upto 3 Lakh Penalty:

Missed MSME-1 Filing? Get Ready to Pay Upto 3 Lakh Penalty All companies included in India that have not paid their Micro and Small Enterprise (MSME) suppliers within the period of 45 days must file a form called MSME-1 with the Ministry of Corporate Affairs (MCA). This rule helps make sure that MSMEs get paid on time. It is based on the MSME Development Act, 2006, and the Companies Act, 2013. A recent official notice from the Ministry of MSME on March 25, 2025, confirms this requirement. Companies need to file this form twice a year and must include:

• The amount of money they still owe to MSME suppliers.
• The reasons why the payment was delayed for more than 45 days.

Form MSME-1 is a report that companies must file if they have unpaid bills to MSME-registered suppliers that are overdue for more than 45 days after receiving goods or services. Companies only need to file this form if there are delayed payments. If there are no overdue payments, the form does not need to be filed (and a "nil return" is not allowed). The updated MSME-1 form on the MCA V3 platform requires companies to give more details, including:

• The amounts paid within 45 days and after 45 days.
• The reasons for the delay in payments.

Who Should File Form MSME-1?

Companies should file Form MSME-1 when payments are due to MSME for more than 45 days from the date of acceptance of the services or goods, along with the reason for its delay. Below mentioned Companies should File Form MSME-1 Companies that have obtained goods or services from the MSME. Companies whose payments to the MSMEs exceed 45 days from the date of acceptance or deemed acceptance of the goods or services.

Details to be Reported in Form MSME-1

Below mentioned details to be Reported by the companies in Form MSME-1:

• CIN and PAN of the company
• Name and PAN of the suppliers
• Name, address and e-mail of the company
• Outstanding amount due against the supply of goods or services
• Date from which the amount is due
• Reason for delay in payment of the amount due

Filing Deadlines for MSME-1:

• For the period April to September, the form must be filed by October 31st.
• For the period October to March, the form must be filed by April 30th.

Penalty for Not Filing:

If a company doesn't file the MSME-1 form or submits incorrect information, it may face a penalty under Section 405(4) of the Companies Act, 2013. In case of continuing failure, the company and every officer in default will be liable for a further penalty of Rs.1,000 for each day the failure continues, and Maximum penalty Up to Rs. 3 lakh for the company can be levied