Name: MSME Returns in India - corpbiz
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MSME Return Filing Services

Are you a registered company under the Companies Act of 2013 with overdue payments to micro and small enterprise suppliers? Get expert assistance for tracking delayed payments, Form 1 filing, compliance & legal support through 10,000+ professionals for MSME return filing. Save up to Rs 3 lakh in penalties.

What’s Included?

MSME Form 1 Filing Services
Management of Outstanding Dues
Compliance Support for 1 Year

MCA Portal V3 Management
Accounting and Bookkeeping
Review of Purchase Registers

Filed MSME Return for 5000+ Companies in India since 2018

Understanding Udyam Return Filing

Udyam return filing- Form 1 is a mandatory half-yearly return that is a mandatory compliance requirement for specified companies against outstanding payments towards their MSME suppliers with the Registrar of Companies (ROC).

It applies to all registered private and public limited companies in India engaged with MSMEs that have delayed payments for more than 45 days from the date of receipt of goods and services.

With Corpbiz’s assistance, you’ll be able to manage your MCA portal, timely submit the MSME Form 1 filing report within the prescribed deadline, and avoid penalties for non-compliance. Contact us today and save your money in lakhs.

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What is a MSME Form 1 Filing?

MSME Form 1 Filing is a half-yearly obligation that is fulfilled by certain companies that engage with MSME suppliers (excluding medium enterprises). The eligible companies must identify if their supplier is registered under the Micro, Small, and Medium Enterprises Act of 2006.

Once verified, the companies must submit the report against the outstanding dues owed by them to their MSME supplier. The report must mention the overdue payments.

Benefits of MSME Form 1 Filing

The benefits of MSME Form 1 filing include compliance with the MCA, avoidance of penalties, and data management.

Strategic Planning

With timely MSME return filing, you can use the same data as feedback for payment trends and supplier relationships, which can help you make informed financial decisions for your company’s growth.

Tax Credits

Compliance with MSME return filing helps companies obtain tax deductions and input tax credits (GST).

Enhanced Cash Flow

The mandate to monitor overdue payments to MSMEs assists the companies in improving their internal cash flow management and accounting systems, stabilizing their financial health.

Improves Credibility

A company with on-time MSME returns filing is more likely to be perceived as reliable by its suppliers, investors, business partners, and regulatory authorities than one with late filings.

Builds Trust

Payment practices in accordance with the MSME return filing help companies in building trust and confidence in micro and small enterprises, strengthening the relationship and enhancing the entity’s reputation as a good business partner.

Avoidance of Penalties

Timely filing of MSME returns can help you avoid huge penalties of INR 20,000 that can go up to INR 3 Lakhs under the Companies Act of 2013. It is one of the significant benefits of MSME Form 1 filing.

Protects the MSME Industry

The mandatory MSME return filings help the micro and small enterprises to maintain their cash flow.

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Requirements for MSME Form 1 Filing

The requirements for MSME Form 1 filing, including company registration, half-yearly reporting, and supplies with MSEs.

The company should be incorporated under the Companies Act of 2013, meaning it must be a private or public limited legal entity.
Such a company should have received goods or services from the micro and small enterprises.
Entities must have unpaid dues of more than 45 days against their Udyam suppliers (MSEs).
The MSME Form 1 must be submitted through the MCA’s V3 portal.
Before reporting the Udyam return filing, the legal entities must verify that their vendors are registered under the Udyam Registration Portal.
The concerned authorized signatory filing the return must have a valid digital signature certificate (DSC).
The form must include your company identification number (CIN), registered address, email, and name of the authorized signatory.
You should include details of the supplier, such as name, PAN number, outstanding amount, date of the unpaid payments, and reason for the delay.
The form must be submitted by Oct 31 for April to September and by April 30 for October to March periods.

Checklist: Who Must Submit MSME Return Filing?

Specified companies, including private and public (listed/unlisted), with more than 45 days of outstanding payments against their MSME suppliers.
Must have obtained products or services from such suppliers.
The outstanding payments must be due by 45 days from the date of acceptance of the goods or services.

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Documents Required for MSME Return Filing

The documents required for MSME return filing are as follows:

Company registration number (CIN)
Permanent Account Number (PAN) of the company and directors
Digital Signature Certificate (DSC) of the authorized signatory who’ll submit the form
Board resolution, if required for filing
Details of the supplier’s enterprise and PAN card
Copy of the UDYAM registration certification for faster processing of the MSME verification
Goods and Services Tax Identification Number (GSTIN) of the supplier

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Details to Be Reported on the MSME Form 1 Filing

The list of details to be reported on the MSME Form 1 filing is as follows:

Name, PAN, and email of the company.
PAN and name of the supplier.
Outstanding due amount against the supply of goods and services.
Date from which the amount is due.
Reason for the late payment of the due amount.

How to Submit MSME Return Filing with Corpbiz?

Scroll down and find out how to submit MSME return filing with Corpbiz’s expert guidance:

Identification of Suppliers

The first step is to identify and verify all your MSME suppliers in accordance with the Micro, Small, and Medium Enterprises Act of 2006. We’ll help you obtain their certifications to ensure transparency and faster approval of returns.

Evaluation of Accounts Payable Ledger

Once you’ve verified your suppliers, our CAs will help conduct a review of all the outstanding payments from the MSME suppliers on your behalf.

Identification of Non-payment

We’ll help you review the invoices, including the date of acceptance, bill payment deadline, and actual payment dates. If a payment was made after 45 days of the agreed-upon time, then we’ll help you move forward with the MSME return filing.

Submission of Udyam Return Filing

Our compliance associates will file your return through the MCA V3 portal by submitting the necessary documents and details, including CIN, PAN, registered address, MSME supplier’s information, GST, and reason for late payment. The Form 1 is a digital filing that requires a digital signature certificate (DSC) from your directors.

Continuous Monitoring

We’ll keep on monitoring the legislative changes to ensure compliance with filing requirements in accordance with potential amendments throughout the year.

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Features of MSME Return Filing

The features of MSME return filing include compliance, promotion of transparency, and support for economic growth.

The submission of the MSME Form 1 filing is mandatory if a company’s payment to its MSME suppliers (excluding medium enterprises) is late by 45 days.
There’s no requirement to file the “Nil” return in case a corporation has no outstanding payments.
Companies, including private and public limited ones, engaged with MSE vendors must file the Form 1 filing.
The return must be filed twice each year, namely by Oct 31 and April, with the Registrar of Companies (ROC).
The return report includes details on the name & PAN of the supplier, outstanding amount, the date of the due amount, and the reason for the delay.
The MSME return filing helps the revenue departments to monitor the delayed payments to the MSMEs.
The filing supports the government in providing financial assistance for small and medium enterprises.
The non-compliance with the MSME return filings amounts to INR 20,000 in penalties against the company and defaulting directors.
An additional INR 1,000 per day for continuous failures, with a maximum INR 3 Lakh as a fine under Section 405 (4) of the Companies Act of 2013.
The non-compliance with the rules can also amount to imprisonment for up to six months.
The MSME return filing is done through the online MCA portal.

Penalties for Non-compliance of MSME Return Filing

If you fail to comply with the Udyam return filing mandate by the ROC, then you’ll have to pay hefty penalties. Check out the key points relating to penalties for non-compliance with the MSME return filings:

Non-compliance will attract a penalty of INR 20,000 under Section 405 (4) of the Companies Act of 2013.
Any subsequent failure will result in INR 1000 for each day of non-filing of the return.
The penalties can go up to a maximum of INR 3 Lakh.

Partner with Corpbiz and reduce your chances of penalty imposition to zero per cent for MSME Form 1 filing services.

Compliance After MSME Form 1 Filing Services

The compliance requirements after MSME Form 1 Filing services are as follows:

Supplier Classification: We’ll help you continuously monitor and classify your Micro and Small Enterprises (MSEs) to track late payments and filing deadlines.
Enhance Internal Governance Systems: Our experts will assist you in setting up an internal management system to improve your tracking and ensure timely payments, avoiding potential delays.
Statutory Audits: We’ll help you maintain all the records, including payment receipts, invoices, and return receipts, in anticipation of a potential statutory audit.

Compliance After MSME Form 1 Filing Services

Why Trust Corpbiz for MSME Form 1 Filing Services?

No Hidden Charges

With a 100% transparent cost structure, we have no hidden or additional charges.

Real-Time Updates

We provide live tracking of your service requests to ensure timely MSME return filing and bookkeeping.

Network of 10,000+ Professionals

Our team of expert professionals have more than 10 years of experience in accounting, bookkeeping, income tax, and GST filing.

Uninterrupted Compliance Support

Our compliance associates ensure ongoing monitoring of legislation and regulations to ensure compliance with the latest regulatory developments.

Avoid Penalties

With timely MSME return filing, you can save a lot of money up to INR 3 Lakh, and use the same for business expansion.

Remote Filing- Online

The MSME return filing is done through the V3 on the MCA portal- you don’t need to visit the ministry in person- our associates will take care of everything on your behalf.

24/7 Support

Our client assistance system is live 24/7 to support you with legal, technical, and accounting issues.

Lifetime Consultation

Take the benefit of lifetime consultation for any service once you sign up with us.

EMI Service Available

Access our service anywhere, anytime through EMI with leading banks- file your returns error-free and stress-free.

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Frequently Asked Questions on MSME Return Filing

Have a look at the answers to the most asked questions about MSME Return Filing.

A company must file MSME Form 1 if it has outstanding payments to any supplier registered as a Micro or Small Enterprise that are overdue by more than 45 days. This filing applies to all companies, public or private, regardless of their size or turnover.

The list of data that should be included in MSME Form 1 is as follows:

Company details (CIN number, PAN, and office address).
Name, permanent account number (PAN), and registration ID.
Amount paid within 45 days during the half year.
Payments made after the 45-day period within the half-year.
Outstanding amount within 45 days at the end of the half-year.
Overdue payments after 45 days at the end of the half-year.
Reason for the delay.

Request all relevant documents from your MSE supplier. Micro and small enterprises are defined by investments between INR 2.5 and 25 crore in plant, machinery, or equipment, effective April 1, 2025. The supplier must provide the unique Udyam Registration Number (URN).

Non-compliance with Udyam return filing will result in the following penalties under Section 405 (4) of the Companies Act of 2013:

INR 20,000 for the company and each defaulting officer.
INR 1,000 per day for subsequent failures, with a maximum going up to INR 3 Lakh.

No, the Form 1 is not applicable to any outstanding payments made to medium enterprises. It is only mandatory for unpaid dues against micro and small enterprises.

The V3 version of the filing, as effective from July 15, 2024, mandates the following:

Companies must report all transactions with their MSME suppliers.
Filing is required for delayed payments, not just the outstanding amount during the half-year period.
Detailed categorization of payments as per timing and payment status.

The list of documentation requirements for reporting the Form 1 is as follows:

Digital signature certificate (DSC)
Udyam registration number (URN)
PAN of the company and the MSE enterprise
Company Identification Number (CIN)
Proof of outstanding payments, such as invoices.

The process of Udyam return filing is as follows:

Step 1: Log in to the Ministry of Corporate Affairs (MCA).
Step 2: Go to e-Forms and choose “MSME Form 1”.
Step 3: Fill in the details on the CIN and PAN of your company.
Step 4: Enter the basic details of your company.
Step 5: Fill out the returns of outstanding payments to your MSE suppliers.
Step 6: Explain the reason for late payment in the prescribed manner.
Step 7: Attach supporting documents and complete the declaration.
Step 8: Digitally sign the form and submit it for final confirmation.

The basic criteria for submitting the return are as follows:

The company should be registered under the Companies Act of 2013.
They must receive supplies from the Micro and Small Enterprises (MSEs).
The payments must be outstanding for 45 days from the acceptance of the invoice.
Medium enterprises are not included in this filing return.

A company’s director or promoter with a valid Digital Signature Certificate (DSC) is authorized for filing MSME Form 1.

No, companies do not need to submit the NIL MSME 1 return if they don’t have any outstanding amounts with the MSMEs.

The due dates for submitting the return are filed for the following periods:

April-September: October 31.
October-March: April 30.

The primary issues of Udyam return filing are as follows:

Verification of micro and small enterprises to validate their registration status.
Calculation of the time period of payment delays (within 45 days).
Collection of data, including PAN, supply receipts, and outstanding payments.
On-time filing within deadlines, namely October 31st and April 30th, to avoid penalties.

To compute the data for Form 1 filing, it must start with the date of acceptance of goods/services from the registered MSEs. The date of acknowledgment of products or services is set when the buying company doesn’t raise any objections against the supplier within 15 days of receiving the supplies. From such date, 45 days must be counted for compliance with the payment window. If no dues are cleared within this period, then the said amount is considered as outstanding and the purchaser is mandated to pay interest as mandated under the MSME Act of 2006.

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MSME Return Filing Services

Understanding Udyam Return Filing

What is a MSME Form 1 Filing?