MSME Form 1 (Half-Yearly Return)
The half-yearly return companies file on payments outstanding to micro and small suppliers.
Every company that buys from a micro or small enterprise and has not paid within forty-five days must report those outstanding dues to the Registrar twice a year. The filing is MSME Form 1, and it exists to make late payment to small suppliers visible.
Companies frequently miss it because the obligation is triggered by their creditors rather than by anything in their own records. If you do not know which of your suppliers hold Udyam registration, you cannot know whether the form is due.
Charges on enquiry
This service is quoted case by case, because the work depends on your documents, the authority involved and the timeline you need. Send us a short note and we will confirm the professional charges and the government fees in writing before starting.
When the obligation arises
- The company has procured goods or services from a micro or small enterprise
- Payment is outstanding beyond forty-five days from the date of acceptance
- The supplier is registered as a micro or small enterprise under the MSMED Act
- Medium enterprises are outside the reporting requirement
- The obligation applies to all companies, including private and one person companies
The half-yearly cycle
The return covers two periods each year — April to September, due by 31 October, and October to March, due by 30 April.
Each return reports the amount outstanding as at the end of the period, the supplier details and the reason payment has not been made. A nil return is not required where nothing is outstanding beyond forty-five days.
Identify your MSME suppliers first
The practical difficulty is knowing which suppliers qualify. The obligation attaches to dues owed to a registered micro or small enterprise, and a company cannot report accurately without that information.
The workable approach is to collect Udyam registration details as part of vendor onboarding, and to flag those vendors in the accounting system. Trying to establish the position retrospectively across a full creditors ledger is slow and unreliable.
The related tax consequence
Separately from the reporting obligation, a deduction for a payment to a micro or small enterprise is allowed under the Income Tax Act only in the year the payment is actually made where it is not paid within the time the MSMED Act allows.
That makes late payment to small suppliers a tax cost as well as a reporting issue, and the two obligations tend to surface together at year end.
How we handle it
- 1 Identifying MSME suppliers We work through the creditors ledger to establish which suppliers hold micro or small enterprise registration.
- 2 Ageing the dues Outstanding amounts are aged from the date of acceptance to identify what has crossed forty-five days.
- 3 Recording reasons The reason for delay is documented supplier by supplier, since the form requires it.
- 4 Filing the return MSME Form 1 is filed within the half-yearly deadline under digital signature.
- 5 Setting up the process We help you capture Udyam details at vendor onboarding so future returns are straightforward rather than reconstructed.
Frequently asked questions
Does this apply to every company?
Yes, to all companies including private and one person companies, wherever dues to a micro or small enterprise are outstanding beyond forty-five days.
When is it due?
By 31 October for the April to September half year, and by 30 April for October to March.
Do I file a nil return?
Not required where nothing is outstanding beyond forty-five days to a micro or small enterprise.
How do I know which suppliers qualify?
By their Udyam registration. The practical answer is to collect it at vendor onboarding, because establishing it retrospectively across a full ledger is slow and unreliable.
Is there a tax consequence to paying late?
Yes. Where payment to a micro or small enterprise is not made within the time the MSMED Act allows, the deduction is deferred to the year of actual payment.
What is not included. Government fees, statutory charges, stamp duty, court and registry fees, digital signature costs and any third-party professional charges are separate and payable at actuals. GST applies on professional fees where indicated. Prices shown are indicative and may change without notice; we confirm the total in writing before any work begins — see our terms on pricing.
Talk to us about MSME Form 1 (Half-Yearly Return)
Share your requirement and our team will confirm the documents needed, the exact charges and a realistic timeline — usually the same working day.
- Expert document checking before submission
- Regular status updates on WhatsApp
- Transparent professional charges
- Assistance in Marathi & English
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