I. Introduction

MSME compliance in India ensures timely payments to Micro and Small Enterprises, supporting their financial health. MSME Form 1 is a mandatory disclosure for companies that delay payments beyond 45 days. This blog simplifies the recent changes to Form 1 and helps businesses understand their responsibilities to stay compliant.

II. Changes in MSME Form 1 Filing: Transition from V2 to V3 Portal

Previously, when MSME Form 1 was filed through the V2 portal of the Ministry of Corporate Affairs (MCA), companies were required to report only those outstanding dues to vendors classified as micro and small enterprises (MSEs) that remained unpaid for more than 45 days from the date of receipt of goods or services, as of the end of each half-year. Consequently, if a company cleared such dues before the close of the reporting period, even if delayed beyond 45 days, it was exempt from disclosing those transactions in the form.

Additions in Revised MSME Form 1 (V3 Portal):

With the transition to the V3 portal, the updated MSME Form 1 now requires companies to provide more comprehensive payment data related to micro and small vendors. The revised form captures four categories of transactions:

- Payments made during the half-year to micro and small vendors within 45 days.

- Payments made during the half-year to micro and small vendors after 45 days.

- Outstanding payments as of the end of the half-year period, where less than 45 days have elapsed.

- Outstanding payments as of the end of the half-year period, where more than 45 days have elapsed.

In contrast to the V2 version—which only required disclosures mentioned in points 2 and 4 above—the V3 version introduces additional reporting for on-time payments (point 1) and payments not yet overdue (point 3), without any accompanying amendment to the underlying legal provisions or MCA circulars.

III.  TIME PERIOD:

Every company on which this form applicable shall file MSME-1 with ROC every half year.

     i.       April to September, Due Date is 31st October

   ii.        October to March, Due Date is 30th April

IV. Who is Required to File MSME Form 1?

Every company—whether public or private—is required to file MSME Form 1 if it meets the following conditions:

- It has received goods or services from suppliers registered as Micro or Small Enterprises (MSEs) under the MSMED Act, 2006.

- Payments to these MSEs remain outstanding for more than 45 days from the date of acceptance or deemed acceptance.

- Even if the payment is eventually made after 45 days, it must still be reported for the relevant half-year period.  

V. Details Required in the Revised MSME Form 1
Companies filing the revised MSME Form 1 must provide the following key information:

• Company Identification Number (CIN) and PAN
   

• Name, address, and official email ID of the company
   

• Details of MSME suppliers: Name, PAN, and nature of goods/services supplied
   

• Outstanding amount and the duration of non-payment
   

• Date from which the payment is due
   

• Reason for payment delay, selected from revised dropdowns or structured options
   

The new format promotes standardized data collection, making compliance monitoring and enforcement more efficient.