MSME Delayed Payment: Filing Deadline and Requirements for MSME-1 Form

The MSME-1 form, introduced in January 2019, was designed by the government to track delayed payments owed by companies to Micro and Small Enterprises (MSEs) for goods purchased. The purpose of the form is to address the issue of delayed payments by requiring buyers to disclose any outstanding amounts that exceed 45 days. This filing is necessary to ensure transparency and accountability in business transactions involving MSEs.

The deadline for filing the MSME-1 form is October 31 for the April to September period and April 30 for the October to March period each year. In July 2024, the government revised the form to collect additional information from buyers regarding outstanding payments. Previously, companies were required to provide basic details, such as the amount due, the date from which it was overdue, and the reason for the delay. The revised form, however, asks for more comprehensive data. This includes the amount paid within 45 days (through the TReDS platform or other payment methods), the amount paid after 45 days, the outstanding amount for 45 days or less, the amount outstanding for over 45 days, and the name and PAN of the MSE supplier.

The MSME-1 form must be digitally signed by authorized company representatives, which could include the director, managing director, company secretary, or CEO. The Director Identification Number (DIN) or PAN of the authorized signatory is required for submission. Failing to file the form on time results in a penalty of Rs 20,000 for the company and every officer in default. Continued non-compliance leads to an additional penalty of Rs 1,000 per day, up to a maximum of Rs 3 lakh.

As of October 11, 2024, 2.09 lakh delayed payment applications amounting to Rs 46,595 crore were filed by micro and small enterprises through the MSME Samadhaan portal. Out of these, only 19,388 applications, involving Rs 2,459 crore, were mutually settled, and 41,909 applications, involving Rs 6,970 crore, were resolved through other means.

Disclaimer: The information provided here is for general awareness purposes. It is recommended to consult a financial or legal expert for precise guidance on compliance with MSME-1 filing requirements.