Article Analyses recent MCA notification on date 22nd January 2019 regarding ‘Micro and Small Enterprise Suppliers’ notified as Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019

As per the Latest Notification, the company shall submit a half yearly return to the Ministry of Corporate Affairs by stating the details of the amount of payment due to Micro and Small Enterprise Suppliers along with the reason of delay. The clarification of said notification as in following points:

i) The companies who get supplies of goods or services from Micro and Small enterprise suppliersshall file a return;

ii) The return shall include the details of:

-the amount of payment due with having the reasons of such delay, exceeding 45 days from the date of acceptance or date of deemed acceptance of the goods or services.

iii) The return shall be filed in prescribed e-form “MSME FORM 1”.

NOTE: the e-form “MSME FORM 1” will be available soon on MCA Portal.

Purpose of return:  provide details of “Amount of Payment due and Reason of delay” to the Registrar of the Companies.

Required E-form:

MSME FORM 1 – Form for furnishing half yearly return with the registrar in respect of outstanding payments to Micro or Small Enterprises.

Applicable Section:

Section 405- Power of Central Government to Direct Companies to Furnish Information or Statistics.


The Companies who get supplies of goods or services from Micro and Small enterprise suppliers and whose payments to Micro and Small enterprise suppliers is outstanding exceed 45 days from the date of acceptance or the date of deemed acceptance of the goods or services as per the provisions of section 9 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006) (hereafter referred to as “Specified Companies”).

Note: only Micro and Small Enterprise Suppliers are considered. Medium Enterprise suppliers are not considered as per the notification

Filing Period:

1. Every specified company shall file in e-form MSME Form 1 details of all outstanding dues to Micro and Small enterprise suppliers existing on the date of notification of this order within 30 days from the date of publication (22.01.2019) of this notification. (one time return);

2. Half yearly return:Every specified company shall file a half yearly return in e-from MSME Form 1 as:  

Filing Period Due date of Filing
From April to September 31st October
From October to March 30th April

 Penal Provision:

Attention is drawn to provision of sub section 4 of section 405 of Companies Act, which provide for punishment for any information statistics which is incorrect or incomplete in any material respect i.e. the company shall be punishable with fine which may extend to twenty-five thousand rupees and every officer of the company who is in default, shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to three lakh rupees, or with both.

All Readers are advised to refer relevant provision of law before applying or accepting any of the point mentioned above or not. Author accepts no responsibility whatsoever and will not be liable for any losses, claims or damages which may arise because of the contents of this write up.

Thank you to visit and read this article. Kindly share your opinion. 

PCS JYOTI ARYA – Email: [email protected] 

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  1. Sreenivasa Setty says:

    Is it compulsory to file Form MSME 1 even there is no outstanding liability to any MSME as on the date of the notification?

  2. mehtab says:

    whether half yearly return will be filed till 30.05.2019 for ther half year october 2018- march 2019?
    also whether initial and half return both will be filed by a company?

  3. Satyam Garg says:

    The return which we have to file on 21st Feb 2019.whether the details of all outstanding is required or the payment which is due for more than 45 days is required to be provided in Form 1

  4. CS Jyoti Arya says:

    One more query received- Whether every company is required to file MSME Form 1 or not?

    Reply- Only specified companies are required to file MSME Form 1. If there is no amount of payment due or the company make a payment within 45 days to suppliers from the date acceptance or deemed acceptance of goods/services then no need to file MSME Form 1.

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June 2021