The government introduced the MSME-1 form in January 2019 to address the issue of delayed payments to Micro and Small Enterprises (MSEs). This form is mandatory for companies to track and report payments delayed beyond 45 days for goods purchased from MSMEs. It is a critical part of efforts to ensure timely payments to these enterprises.
Filing Deadlines
The MSME-1 form is required to be filed twice a year:
For the period April to September: The deadline is October 31.
For the period October to March: The deadline is April 30.
Revised Form Requirements
In July 2024, the government revised the MSME-1 form to include additional details for outstanding payments:
Amount paid within 45 days (via TReDS or other payment methods)
Amount paid after 45 days
Amount outstanding for less than 45 days
Amount outstanding for more than 45 days
Reason for payment delay or outstanding amount
Name and PAN of the MSE supplier
Authorized Signatories and Penalties
The form must be digitally signed by authorized personnel, such as the director, managing director, manager, company secretary, CFO, or CEO. Along with the digital signature, details like Director Identification Number (DIN) or PAN of the signatory are required. Failure to submit the form on time results in a penalty of Rs 20,000 for the company and each defaulting officer, with an additional Rs 1,000 per day for continued delays, up to Rs 3 lakh.
