MCA MSME Form I under the 2019 section 405 Order (as amended 15 Jul 2024) — who must file when MSE dues stay pending beyond 45 days, 31 October / 30 April due dates, and what the substituted form expects you to disclose.
By Kanoons Editorial Team · 11 min read · Last verified 2026-10-06
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Summary
If your company buys from micro or small suppliers and pays them late, MCA wants a paper trail. The Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 (S.O. 368(E), 22 January 2019) — under section 405 of the Companies Act, 2013 — requires MSME Form I (commonly called MSME-1) by 31 October (Apr–Sep) and 30 April (Oct–Mar). The 15 July 2024 Amendment Order (S.O. 2751(E)) narrowed the filing trigger to companies with payments still pending beyond 45 days, while the substituted form also captures amounts liquidated after 45 days in the half-year. Verified against the 2019 Order, the 2024 amendment, and the substituted Form I on 6 October 2026.
- Filing trigger (post 15 Jul 2024): supplies from micro / small enterprises + payment still pending beyond 45 days from acceptance / deemed acceptance (MSMED Act section 9).
- Due dates: 31 Oct (H1) and 30 Apr (H2).
- Once filing: Form I also asks for amounts paid / liquidated after 45 days, not only open balances.
- Wrong or missing particulars → section 405(4) exposure.
- Service path: MSME-1 Return.
Who is in scope
| Question | Practical answer |
|---|---|
| Which suppliers? | Enterprises registered / classified as micro or small under the MSMED framework (not “medium” for this Order’s focus) |
| Which buyers? | Specified companies with MSE payables still pending > 45 days (post-2024 proviso) |
| One late unpaid bill enough? | Yes — one qualifying pending MSE payable beyond 45 days puts Form I on your checklist |
| LLPs / proprietors? | This Order targets companies under the Companies Act path; other entities still face MSMED Act payment / interest rules |
Keep an MSE flag on every vendor master (Udyam details, classification, invoice acceptance date). Without that flag, MSME-1 becomes a forensic reconstruction every April and October.
What the return is really asking
On the live MSME Form I (substituted July 2024), expect tables that capture, among other things:
- Payments made within 45 days (including through TReDS where used)
- Payments made after 45 days (liquidated after the 45-day line)
- Amounts outstanding ≤ 45 days and > 45 days
- Reason for delay / outstanding
The Order’s filing gate is pending > 45 days. The form’s note then asks you to report dues that are overdue or were liquidated after 45 days — so clearing a late bill in September does not erase the disclosure line if you still had to file for that half-year.
Mid-article CTA: File your MSME-1 half-yearly return → Cross-sell: ROC Annual Filing, Bookkeeping, MSME / Udyam Registration.
Operating checklist for finance teams
1. Tag every vendor’s MSME status at onboarding; refresh annually. 2. Capture acceptance / deemed acceptance dates, not only invoice dates. 3. Age payables at 45 days continuously — do not wait for half-year end. 4. Prefer TReDS / disciplined payment runs where delayed MSE bills are structural. 5. Export the half-year ageing → draft Form I → director / authorised signatory review → MCA filing. 6. Archive Udyam proofs and payment workings with the ARN.
Related: Private limited annual compliance calendar (MSME-1 sits beside, not inside, AOC-4 / MGT-7).
Failure modes
- Skipping Form I when an MSE payable is still open beyond 45 days at filing time
- Omitting “liquidated after 45 days” lines the substituted form still asks for
- Treating “medium” enterprises as in-scope (or ignoring micro/small that never shared Udyam)
- Using invoice date instead of acceptance date for the 45-day clock
- Leaving MSME-1 to the CS while purchase data lives only in the ERP
Related reading on this site
- Private limited annual compliance calendar
- LLP annual compliance Form 11 / Form 8
- Company strike-off under section 248
- Startup legal agreements checklist
Primary sources
- Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 — S.O. 368(E) (22 Jan 2019)
- Specified Companies … Amendment Order, 2024 — S.O. 2751(E) (15 Jul 2024) (pending > 45 days filing proviso + substituted Form I)
- Companies Act, 2013 — section 405
- Micro, Small and Medium Enterprises Development Act, 2006 — section 9 (payment period)
- MCA e-form MSME Form I instruction kit (substituted form / V3)
Disclaimer
General information only — not legal advice. Kanoons is not a law firm. Specified-company scope, form columns and section 405 penalties are fact-specific; confirm against the live Order, MSMED Act and MCA e-form instructions for the half-year you are filing. See our Disclaimer.
Frequently asked questions
What is MSME Form I?
A half-yearly return to the Registrar under 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. It reports payments to micro and small enterprise suppliers that are outstanding beyond 45 days (and, on the current V3 e-form, related delayed-payment particulars the form requires).
When is MSME-1 due?
By 31 October for the April–September half-year, and by 30 April for the October–March half-year, as stated in paragraph 3 of the 22 January 2019 Order.
Which companies must file?
After the 15 July 2024 Amendment Order (S.O. 2751(E)), only specified companies that still have payments pending to any micro or small enterprise for more than 45 days from acceptance / deemed acceptance under section 9 of the MSMED Act, 2006 must furnish MSME Form I. Once you are filing, the substituted form also asks you to report amounts that were liquidated after 45 days in the half-year — not only balances still open on the period-end date. Confirm the live Order + form instructions for the period you are filing.
Does MSME-1 replace the 45-day payment duty under the MSMED Act?
No. The MSMED Act still expects buyers to pay micro and small suppliers within the agreed period, capped at 45 days. MSME-1 is an MCA disclosure about delayed / outstanding dues — it does not cure interest liability or compound the supplier’s statutory remedies.
What is the penalty for wrong or missing MSME-1 information?
Section 405(4) of the Companies Act penalises failure to furnish information and furnishing information that is incorrect or incomplete in any material respect (company and officers in default — fine quantum and continuing default as per the section). Treat the return as an attested disclosure, not a nil-click formality.