MSME RETURN FILLING
In India’s growing business ecosystem, Micro, Small, and Medium Enterprises (MSMEs) play a vital role in driving innovation, employment, and economic growth. Yet, one of the biggest challenges MSMEs face is delayed payments from large buyers. To safeguard these small businesses and promote a culture of timely payments and financial transparency, the Government of India introduced MSME Return Filing under the Companies Act, 2013.
This initiative not only ensures accountability and discipline among large corporations but also empowers small enterprises to receive their payments on time — strengthening the backbone of India’s business economy.
APPLICABILITY:
The requirement applies to:
- All companies (Private, Public, LLPs, etc.) registered under the Companies Act, 2013.
- That have outstanding dues to MSME suppliers for more than 45 days from the date of acceptance or deemed acceptance of goods or services.
Such companies are mandated to file a half-yearly MSME Return in Form MSME-1 with the MCA.
Importance of MSME Return Filing:
- Ensures fair business practices and timely payments.
- Promotes financial discipline among large buyers.
- Supports government efforts to protect small businesses.
- Helps in monitoring the credit ecosystem of MSMEs.
FAQs
It is a half-yearly return that “specified companies” must file with the Ministry of Corporate Affairs (MCA) disclosing outstanding payments to Micro & Small Enterprises (MSE) suppliers exceeding 45 days.
All companies (public or private) that procure goods or services from MSME suppliers and whose payments to them exceed 45 days from acceptance are required to file.
No. If a company has no outstanding dues beyond 45 days to MSME suppliers, it is not required to file Form MSME-1.
Penalty up to ₹25,000 for the company; officers in default may face fines up to ₹3 lakh or imprisonment up to 6 months.
Name, PAN of MSME supplier, amount outstanding, date from which due, reason for delay, etc.
For April–September: by 31 October AND For October–March: by 30 April