📌 Introduction
The Government of India continues to strengthen the Micro, Small, and Medium Enterprises (MSME) sector through streamlined regulatory compliance and digitalization. One of the key compliance mandates introduced for MSMEs is the MSME Return Filing, formally known as the MSME Form 1.
This blog explains everything business owners and professionals need to know about the new MSME return filing requirements in 2025—from eligibility to due dates and filing procedures.
📚 What is MSME Return Filing?
MSME Return Filing, also referred to as MSME Form 1, is a mandatory return that needs to be filed by certain companies that procure goods or services from micro and small enterprises and delay payments beyond 45 days.
The return helps track delayed payments and ensures that MSMEs receive timely dues, improving their cash flow and sustainability.
✅ Applicability: Who Needs to File MSME Returns?
According to the Companies (Furnishing of Information about Payment to Micro and Small Enterprise Suppliers) Order, 2019, the following entities must file MSME returns:
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All companies, whether public or private, regardless of size,
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That procure goods or services from Micro and Small Enterprises, and
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Have outstanding payments exceeding 45 days from the date of acceptance or deemed acceptance of goods/services.
💡 Note: Medium enterprises are not covered under this specific filing.
📅 MSME Return Due Dates for 2025
There are two filing periods for MSME returns in a financial year:
| Return Period | Due Date |
|---|---|
| April to September | 31st October 2025 |
| October to March | 30th April 2025 |
🧾 Information Required in MSME Form 1
While filing the return, the following details must be furnished:
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Total amount due to MSMEs (with invoice value)
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Name, PAN, and registration number (Udyam/Udyog Aadhaar) of the supplier
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Date from which the amount is due
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Reasons for delay in payment (if any)
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Declaration regarding status of the supplier as Micro/Small (self-attested or based on invoice)
🔁 How to File MSME Form 1 – Step-by-Step Guide
Here's a step-by-step guide to filing the MSME return online:
Step 1: Visit MCA Portal
Go to the Ministry of Corporate Affairs (MCA) website.
Step 2: Download MSME Form 1
Navigate to the Forms & Downloads section and download MSME Form 1 (XBRL).
Step 3: Fill in Company & Supplier Details
Provide CIN, company name, and outstanding payment details for each MSME vendor.
Step 4: Digitally Sign the Form
Use a valid DSC (Digital Signature Certificate) of an authorized director.
Step 5: Upload the Form on MCA Portal
Log in to the MCA21 portal, and upload the filled form under MCA Services > Upload e-Forms.
Step 6: Make Payment (if applicable)
No statutory fees are charged, but late filing may attract penalties.
⚠️ Penalties for Non-Compliance
Failing to file MSME Form 1 within the due date can result in penalties under Section 405 of the Companies Act, 2013:
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Fine up to ₹25,000 for the company
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Fine up to ₹3,000 per day for officers in default (including imprisonment in some cases)
💡 Benefits of Timely MSME Return Filing
✔️ Avoid regulatory penalties
✔️ Promote good governance practices
✔️ Ensure fair treatment of micro and small vendors
✔️ Enhance brand credibility and vendor relationships
✔️ Comply with MCA and MSME regulations
🧠 Pro Tip for Businesses
It is advisable to:
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Maintain a separate register of MSME vendors
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Regularly verify the MSME status of suppliers
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Use automated accounting software for due date tracking
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Consult professionals for accurate filing and audit readiness
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👨💼 How Verotus Finlegal Solutions LLP Can Help
At Verotus Finlegal Solutions LLP, we specialize in statutory compliance, return filing, and MSME advisory. Our expert team ensures:
✅ Accurate MSME classification of vendors
✅ Timely return filing
✅ End-to-end MCA compliance support
✅ Hassle-free documentation management
📞 Contact us at info@verotusllp.com or visit www.verotusllp.com for assistance.
📢 Conclusion
The new MSME return filing framework is a significant move to protect the interests of Micro and Small Enterprises. Staying compliant not only avoids penalties but also builds better business relationships. With 2025 bringing renewed focus on transparent governance, it's crucial to file MSME Form 1 on time.
Let Verotus be your compliance partner in the journey of ethical business!
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