MSME Form 1, explained

What MSME Form 1 reports

MSME Form 1 requires a company to report the total outstanding dues to micro and small enterprise suppliers that remain unpaid beyond 45 days, along with the reasons for the delay.

It is a disclosure duty, separate from the interest a late payment attracts under Section 16 and the income-tax consequence under Section 43B(h). It puts the delay on the public record.

Who files it and when

Companies that owe such amounts file MSME Form 1 every half year — by 31 October for the April-to-September period, and by 30 April for the October-to-March period.

The duty attaches to companies specifically. It sits alongside the buyer's core obligations under the 45-day rule: pay on time, and pay the statutory interest if late.

How a ledger supports the disclosure

Knowing which supplier dues have crossed 45 days is exactly the input MSME Form 1 needs, and it is the same signal a receivables clock produces from the supplier's side.

Lekha ages each bill against the MSME 45-day clock and flags the overdue ones. Lekha records what your documents say and tracks the money on both sides — what you owe and what you are owed. It records and tracks; it does not replace your accountant.

Questions

What is MSME Form 1?

A half-yearly return companies file with the Ministry of Corporate Affairs disclosing dues to micro and small suppliers outstanding beyond 45 days, with reasons for the delay.

When is MSME Form 1 due?

By 31 October for the April-to-September half year, and by 30 April for the October-to-March half year.

Is MSME Form 1 the same as paying interest on late payment?

No. Form 1 is a disclosure duty. It is separate from the Section 16 interest and the Section 43B(h) income-tax consequence a late payment attracts.

This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.

Keep reading

• The MSME 45-day payment rule
• MSME classification criteria
• See how Lekha works
• All Lekha guides