MSME Return Filing

MSME stands for Micro, Small, and Medium Enterprises. It was introduced by the Government of India in agreement with the MSMED (Micro, Small, and Medium Enterprises Development) Act of 2006. As per this act, MSMEs are the enterprises involved in the processing, production, and preservation of goods and commodities.

The Ministry of Corporate Affairs (MCA) issued a notification on 22 January 2019 that specific companies having outstanding dues to the MSME (Micro, Small and Medium) enterprises have to file the particulars of all current outstanding dues in Form MSME-1 with the ROC (Registrar of Companies).

Companies need to identify if their suppliers are registered or not under the MSME Act, 2006. When the suppliers are registered under the MSME Act, and there are outstanding dues by a company to the MSME suppliers, it must file Form MSME-1.

Who Should File Form MSME-1?

Specified 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. Specified companies are companies-

• • That have obtained goods or services from the MSME.
• • 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

• • CIN and PAN of the company
• • Name, address and e-mail of the company
• • Name and PAN of the suppliers
• • 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