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MSME-1 Half-Yearly Return (Section 405)

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

Service: End-to-end preparation and filing of your MSME-1 half-yearly return.

Fees: MSME-1 filing starting from INR 1,999 (Exl GST and Govt. Charges), per filing.

Due dates: 31 October for April to September and 30 April for October to March.

Applies if: You owe a Micro or Small supplier beyond 45 days at the half-year end.

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MSME-1 Return: Overview and Quick Summary

📌 TL;DR - MSME-1 Filing Services at a Glance

Form MSME-1 is a half-yearly return under Section 405 that a company must file if it owes a Micro or Small Enterprise supplier for more than 45 days. It is due by 31 October for the April to September half and by 30 April for the October to March half. Only Micro and Small suppliers are covered, and no return is needed if no dues crossed 45 days.

Parameter	Detail
Governing Provision	Section 405 with the Specified Companies Order, 2019
Who must file	Any company owing a Micro or Small supplier beyond 45 days
Covers	Micro and Small only; Medium enterprises excluded
Due dates	31 October (Apr to Sep) and 30 April (Oct to Mar)
Cost	Patron fee from INR 1,999 (Exl GST and Govt. Charges) per filing
When not required	If no MSME dues crossed 45 days at the half-year end
Penalty	Section 405(4) on company and officers, fixed plus daily, capped

MSME-1 services from Patron Accounting cover the identification of Micro and Small suppliers, the 45-day ageing check, the preparation of the disclosure and the filing within the due date. It is a high-volume, low-ticket compliance that many companies with MSME suppliers simply miss. Our team has supported 10,000+ businesses since 2009.

MSME-1 is the buyer-company filing obligation; the supplier side is the Udyam registration that confirms a supplier’s Micro or Small status, and the two due dates can be tracked through our compliance calendar.

What Is the MSME-1 Return?

Form MSME-1 is a half-yearly return through which a company reports its outstanding payments to Micro and Small Enterprise suppliers that have remained unpaid for more than 45 days from the date of acceptance of the goods or services.

It was introduced under Section 405 to enforce timely payments to small suppliers and to give the government visibility of delayed dues. Any company with such overdue MSME payments must file it, which means a very large number of ordinary companies are covered, yet many overlook it.

Key Terms for MSME-1 Filing:

Micro and Small Enterprise: Suppliers registered as Micro or Small under the MSMED Act; Medium is excluded.
45-day rule: Payment due within 45 days of acceptance, beyond which reporting is triggered.
Udyam registration: The supplier’s MSME registration that confirms its Micro or Small status.
Half-year: April to September and October to March, each with its own due date.
Specified company: Any company with outstanding MSME dues beyond 45 days that must file MSME-1.

Section 405 45 Days

Who Must File MSME-1?

MSME-1 applies to any company that buys from Micro or Small suppliers and has overdue payments to them, regardless of the company’s size or type.

Any company: OPC, private, public, listed or unlisted, if it procures from Micro or Small suppliers.
Overdue beyond 45 days: Where a payment to a Micro or Small supplier is outstanding beyond 45 days from acceptance.
Micro and Small only: Only Micro and Small suppliers count; a Medium enterprise supplier is excluded.
Verified by Udyam: The supplier’s Micro or Small status is confirmed from its Udyam registration.
Not required if clean: No return is needed if no MSME dues crossed 45 days, or they were cleared before the half-year end.

MSME-1 sits within the company’s wider yearly compliance; see our private limited company compliance service for the full cycle.

Our MSME-1 Services

Service	What We Do
Supplier Identification	We identify which of your suppliers are Micro or Small from their Udyam registrations and build an MSME supplier list.
45-Day Ageing Check	We run the payables ageing to find any amounts outstanding to those suppliers beyond 45 days at the half-year end.
Disclosure Preparation	We prepare the MSME-1 disclosure, including the supplier details, the outstanding amounts and the reasons for the delay.
Filing on Time	We file the MSME-1 return with the ROC within the 31 October or 30 April due date.
Half-Yearly Tracking	We track both half-years so the return is filed every period it is due, without a miss.
Past Default Clean-Up	Where past MSME-1 returns were missed, we help assess and regularise the position.

Our Process

MSME-1 Process: Step by Step

How Patron prepares and files the MSME-1 half-yearly return, from listing Micro and Small suppliers to filing within the due date and repeating each half-year.

Step 1

List MSME Suppliers

Identify the Micro and Small suppliers from their Udyam registrations.

From Udyam Supplier list

List 01

Step 2

Run the Ageing

Check the payables to those suppliers for any amount outstanding beyond 45 days at the half-year end.

Payables ageing Beyond 45 days

Ageing 02

Step 3

Decide if a Return Is Due

Confirm whether any MSME due crossed 45 days; if none did, no return is required.

45-day test Return or not

Decide 03

Step 4

Compile the Disclosure

Capture the supplier details, the outstanding amounts and the reasons for the delay, including all transactions with a breaching supplier.

Full V3 disclosure Reasons

Disclose 04

Step 5

File the Return

File MSME-1 with the ROC within the 31 October or 30 April due date.

Within due date ROC filed

File 05

Step 6

Record and Repeat

Keep the working papers and repeat the check for the next half-year.

Working papers Next half-year

Repeat 06

Information Required for MSME-1

List of suppliers and their Udyam registration details.
Payables ageing as at the half-year end.
Invoice and acceptance dates for the MSME supplies.
Outstanding amounts due beyond 45 days.
Reasons for the delay in payment.
Valid DSC of the signatory for the filing.

Need the full checklist? We share a ready MSME-1 checklist when you engage us.

Common MSME-1 Challenges and Solutions

Challenge	Impact	How Patron Accounting Solves It
Not knowing which suppliers are MSME	Companies often do not track which vendors are Micro or Small. We collect the Udyam registrations and maintain an MSME supplier list.
Missing the filing entirely	Many companies with MSME suppliers never file MSME-1. We run the ageing each half-year and file where it is due.
Under-reporting the supplier	Under the V3 form, a single 45-day breach means all transactions with that supplier are reported. We capture the full disclosure correctly.
Confusing it with a NIL return	A return is not needed if no due crossed 45 days, but the check must still be done. We confirm the position so nothing is missed.

MSME-1 Service Fees

Fee Component	Amount
Patron Accounting Professional Fees	Starting from INR 1,999 (Exl GST and Govt. Charges), per filing
What it covers	Supplier identification, 45-day ageing check, disclosure preparation and filing within the due date
Past missed periods clean-up	Scoped and charged separately
MCA additional fees	Charged separately on actual basis

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

A clean-up of multiple past missed periods, and any MCA additional fees, are scoped and charged separately. Contact us for a detailed quote.

Get a free MSME-1 Filing consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

MSME-1 Due Dates at a Glance

Stage	Estimated Timeline
April to September half	Return due by 31 October
October to March half	Return due by 30 April
45-day position tested at	30 September and 31 March (the half-year ends)
Patron approach	We run the check ahead of each deadline and file where a return is due

MSME-1 is a half-yearly return with two fixed deadlines each year. The return for the April to September half is due by 31 October, and the return for the October to March half is due by 30 April. The 45-day position is tested at the half-year end, on 30 September and 31 March. We run the check ahead of each deadline and file where a return is due, so neither half-year is missed.

Key Benefits

Why Choose Professional MSME-1 Support

Micro and Small Correctly Identified

Each supplier’s Micro or Small status is confirmed from its Udyam registration, so only the right suppliers are reported and Medium is excluded.

45-Day Ageing Checked Each Half

The payables ageing is run at each half-year end, on 30 September and 31 March, so any 45-day breach is caught.

Full Disclosure Under the V3 Form

Where one payment breaches 45 days, all transactions with that supplier are reported, as the MCA V3 form requires.

Filed Within Both Due Dates

The return is filed within the 31 October and 30 April windows, so neither half-year is missed.

Section 405(4) Penalty Avoided

Timely filing avoids the fixed plus continuing Section 405(4) penalty, and supports the Section 43B(h) tax position on timely payment.

Handled by Qualified CAs and CSs

The return is prepared and filed by qualified Chartered Accountants and Company Secretaries.

Trusted by Businesses Across India

10,000+ Businesses Served | 4.9 Google Rating | 50,000+ Documents Filed | 15+ Years

"We did not realise several of our vendors were Micro enterprises. Patron built our MSME list and now files MSME-1 every half-year." - Director, manufacturing company, Pune.

"Patron flagged a 45-day breach we had missed and filed the MSME-1 before the deadline, so we avoided the penalty." - Founder, services company, Delhi.

Trusted by leading brands including Hyundai, Asian Paints and Bridgestone for accounting and compliance support.

With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting serves businesses across India - both in-person and remotely.

MSME-1 at a Glance

Question	Answer	Note
Who files	Any company with overdue MSME dues	All company types
Which suppliers	Micro and Small only	Medium excluded
Trigger	Outstanding beyond 45 days	Tested at half-year end
Due dates	31 October and 30 April	Half-yearly

Related Compliance Services

MSME-1 sits within the company’s wider compliance and connects with the supplier side. Patron handles both.

Private Limited Company Compliance for the full annual compliance cycle.
Compliance Calendar to track the 31 October and 30 April MSME-1 due dates.
Udyam Registration for a supplier or your own business to register as a Micro or Small enterprise.
Secretarial Audit which reviews the company’s ROC filings.
Pvt and LLP Compliance for ongoing entity compliance.

Legal and Compliance Framework

Requirement: Form MSME-1 is filed under Section 405 of the Companies Act, 2013 and the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019, notified on 22 January 2019, by every company that has outstanding dues to Micro or Small Enterprise suppliers beyond 45 days from acceptance of the goods or services.

Scope: Only Micro and Small enterprises are covered, with Medium enterprises excluded, and the supplier’s status is confirmed from its Udyam registration, while a Medium supplier or a supplier that declares it is not Micro or Small need not be reported.

Periodicity: It is a half-yearly return, due by 31 October for the period from April to September and by 30 April for the period from October to March, with the 45-day position tested at the half-year end, and no return is required where no due crossed 45 days.

Disclosure and penalty: Under the MCA V3 form, where a payment to an MSME supplier breached 45 days during the half-year, all transactions with that supplier are disclosed, and non-filing attracts a penalty under Section 405(4) on the company and its officers in default, a fixed amount with a continuing daily penalty, subject to a cap.

A related consequence is that under Section 43B(h) of the Income-tax Act, a deduction for a late payment to a Micro or Small supplier is deferred to the year of actual payment. Refer to the MCA portal for the form and to Section 405 on IndiaCode for the bare provision.

What is Form MSME-1?

Form MSME-1 is a half-yearly return filed with the Registrar of Companies under Section 405 of the Companies Act, 2013, reporting a company’s outstanding payments to Micro and Small Enterprise suppliers that have remained unpaid for more than 45 days from the acceptance of the goods or services. It was introduced to enforce timely payments to small suppliers and give the government visibility of delayed dues.

Who has to file MSME-1?

Any company that procures goods or services from a supplier registered as a Micro or Small Enterprise, and has a payment to that supplier outstanding beyond 45 days, must file MSME-1. This applies regardless of the company’s size or type, so one-person, private, public, listed and unlisted companies are all covered if they have such overdue dues to Micro or Small suppliers.

What are the due dates for MSME-1?

MSME-1 is a half-yearly return with two due dates each year. The return for the half-year from April to September must be filed by 31 October, and the return for the half-year from October to March must be filed by 30 April. The 45-day outstanding position is assessed at the end of each half-year, on 30 September and 31 March respectively.

Does MSME-1 cover Medium enterprises?

No. MSME-1 covers only suppliers registered as Micro or Small Enterprises. Payments to Medium enterprise suppliers are not reported in MSME-1, even if they are overdue. The supplier’s Micro or Small status is confirmed from its Udyam registration, so verifying each supplier’s category is an important first step in deciding what to report.

Is a NIL MSME-1 return required?

A return is not required if no payment to a Micro or Small supplier was outstanding beyond 45 days at the half-year end, for example where all such dues were paid within 45 days or were cleared before the period end, or where the company has no Micro or Small suppliers. However, the 45-day check should still be carried out each half-year so the position is confirmed.

What does the 45-day rule mean for MSME-1?

Under the MSMED Act, a buyer must pay a Micro or Small supplier within 45 days of acceptance or deemed acceptance of the goods or services. Where a payment remains outstanding beyond 45 days, the reporting obligation under MSME-1 is triggered. Under the MCA V3 form, if even one payment to a supplier breached 45 days during the half-year, all transactions with that supplier must be reported.

What is the penalty for not filing MSME-1?

Non-filing of MSME-1, or filing incorrect information, attracts a penalty under Section 405(4) on the company and every officer in default. The penalty is a fixed amount together with a continuing daily penalty for the period the default continues, subject to an overall cap. Filing each half-yearly return on time is the simplest way to avoid the penalty and any related notice.

How is MSME-1 connected to income tax?

Separately from MSME-1, Section 43B(h) of the Income-tax Act provides that a deduction for an amount payable to a Micro or Small supplier is allowed only in the year the payment is actually made, where it is not paid within the time allowed under the MSMED Act. So a late MSME payment can both trigger MSME-1 reporting and defer the company’s tax deduction, which makes timely payment doubly important.

MSME-1 kya hota hai?

MSME-1 ek half-yearly return hai jisme company apne Micro ya Small suppliers ke 45 din se zyada bakaya payment ROC ko report karti hai.

MSME-1 kab file karni hoti hai?

April se September ke liye 31 October tak aur October se March ke liye 30 April tak MSME-1 file karni hoti hai.

Quick Answers

Who files? Any company owing MSE suppliers beyond 45 days.

Which suppliers? Micro and Small only; not Medium.

Due dates? 31 October and 30 April.

NIL needed? No, if no due crossed 45 days.

Why File on Time

Most companies have MSME suppliers, and many simply miss this. MSME-1 is easy to overlook, yet a missed filing draws a fixed and continuing penalty under Section 405(4) on the company and its officers, and a late MSME payment can also defer a tax deduction. A quick half-yearly check and a timely filing keep the company clean on both the company-law and the tax fronts.

File your MSME-1 - Call +91 945 945 6700 or WhatsApp us. We respond within 2 hours.

File Your MSME-1 with Patron Accounting

MSME-1 under Section 405 is a simple but easily missed half-yearly return: file it by 31 October and 30 April if you owe a Micro or Small supplier beyond 45 days, covering only Micro and Small suppliers and reporting in full where the V3 form requires.

With penalties for non-filing and a tax-deduction link for late payment, the small effort of filing on time is well worth it. Patron Accounting, with qualified CAs and CSs and offices in Pune, Mumbai, Delhi and Gurugram, runs your MSME-1 every half-year.

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MSME-1 Filing Support Across India

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Content Created: 3 June 2026 | Last Updated: | Next Review: 4 September 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed at least yearly and updated whenever Section 405, the Specified Companies Order, 2019, the 45-day rule, the 31 October and 30 April due dates, the Section 405(4) penalty, the MCA V3 disclosure rule, or the Section 43B(h) income-tax position change. Freshness Tier 1.

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