MSME Form I filing: the half-yearly return of late payments to MSEs

Who must file

The requirement comes from the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019, issued under Section 405 of the Companies Act, 2013. A "specified company" is a company that gets supplies of goods or services from micro and small enterprises and whose payments to them exceed 45 days from the date of acceptance or deemed acceptance under the MSMED Act.

The amendment of 15 July 2024 (S.O. 2751(E)) added that only companies with payments pending to a micro or small enterprise for more than 45 days must file, and replaced the form. Partnerships, LLPs and proprietors do not file MSME Form I, though the MSMED Act's 45-day rule and interest still apply to them as buyers.

Due dates

What the revised form asks for

For each micro or small supplier, by name and PAN, the 2024 form asks for the number and amount of invoices:

• paid within 45 days, separately through TReDS and through other modes
• paid after 45 days
• outstanding for 45 days or less
• outstanding for more than 45 days
• and the reason for the delay or the amount outstanding

The form notes that all amounts due for more than 45 days, or liquidated after 45 days of acceptance, must be reported. It is signed digitally by a director, manager, CEO, CFO, company secretary or authorised representative.

Worked example

A private limited company buys packaging from a Udyam-registered small enterprise. Invoices accepted in the half-year April to September 2026: ₹4,00,000 paid in 30 days, ₹2,50,000 paid after 70 days, and ₹1,80,000 accepted on 1 July 2026 and still unpaid on 30 September. The company must file MSME Form I by 31 October 2026 reporting ₹2,50,000 as paid after 45 days and ₹1,80,000 as outstanding for more than 45 days, with reasons. The ₹4,00,000 paid on time is reported in the "paid within 45 days" column.

The same company also loses the income-tax deduction for the ₹1,80,000 until it actually pays it, under Section 43B(h). See Section 43B(h) year-end payments.

Penalty

Under Section 405(4) of the Companies Act, as substituted by the Companies (Amendment) Act, 2020, if a company fails to comply or furnishes incorrect or incomplete information, the company and every officer in default are liable to a penalty of ₹20,000, and ₹1,000 for each day the failure continues, up to ₹3,00,000.

Why this matters to suppliers

If you are a micro or small supplier and your buyer is a company, every late payment to you has to be disclosed to the Registrar of Companies with a reason. A recovery notice that points this out, together with statutory interest under Section 16 of the MSMED Act and the buyer's Section 43B(h) disallowance, gives the buyer's finance team three reasons to pay you first. FundRaksha Legal sends such notices within 24 hours of complete documents, with no upfront fee and a 30% success fee only on what is recovered.

Is MSME Form I needed if all MSE suppliers were paid within 45 days?

No. After the July 2024 amendment, only companies with payments to a micro or small enterprise pending beyond 45 days from acceptance must file.

What are the due dates for MSME Form I?

31 October for April to September and 30 April for October to March, under paragraph 3 of the 2019 Order.

Does an LLP or partnership file MSME Form I?

No. The Order is made under the Companies Act, 2013 and applies to companies. LLPs and firms are still bound by the MSMED Act's 45-day rule and interest.

What is the penalty for not filing?

₹20,000 on the company and on every officer in default, plus ₹1,000 a day while the failure continues, up to ₹3,00,000, under Section 405(4) of the Companies Act.