Monthly Compliance Checklist for Startups and Small Companies in India

The monthly calendar

Most of a company's recurring compliance clusters in the first three weeks of each month. Build these dates into your accounting calendar so data is ready a few days earlier, especially sales invoices for GSTR-1 and payroll for TDS and PF.

GST each month

Before filing GSTR-1, reconcile the sales register with e-invoices and e-way bills. Values auto-populated from GSTR-1 into GSTR-3B Table 3 cannot be edited from the July 2025 tax period; corrections must be made through GSTR-1A before filing GSTR-3B. Review inward invoices in the Invoice Management System, accept or reject them, and claim ITC only as per GSTR-2B. Pay tax in cash and credit as computed and keep challans with the return.

TDS and payroll each month

Deduct TDS on salaries, contractor payments, professional fees, rent and commission at the rates applicable, and deposit by the 7th of the following month (30 April for March). From tax year 2026-27, the Income-tax Rules 2026 renumber TDS forms, and quarterly returns move to the new forms, so update your software. Run payroll, deduct PF, ESI and professional tax, and pay contributions by the 15th.

• Salary TDS computed on projected annual income
• Non-salary TDS on vendor payments
• PF and ESI contributions and ECR
• Professional tax as per state schedule
• Reimbursement and expense claims booked

Quarterly and periodic items

Some obligations fall each quarter rather than monthly. TDS returns are due by 31 July, 31 October, 31 January and 31 May. Advance tax instalments fall on 15 June, 15 September, 15 December and 15 March. Half-yearly MSME-1 is due by 30 April and 31 October where dues to micro and small suppliers exceed 45 days. Board meetings should keep pace with the frequency the Act requires.

Monthly accounting hygiene

Compliance is easier when books are current. Reconcile each bank account monthly, chase customer TDS certificates, review ageing of receivables and payables, and check that MSME suppliers are being paid within 45 days. A short monthly MIS pack for founders and investors catches errors before they reach GST returns or the auditor.

Event-based filings to watch

Not everything is calendar-driven. Some filings are triggered by events during the month, and the 30-day clocks start from the event date, so record them in your compliance tracker as soon as they happen.

• DIR-12 within 30 days of appointing or losing a director
• PAS-3 within 15 or 30 days of allotting shares
• MGT-14 within 30 days of a special resolution
• SH-7 within 30 days of increasing authorised capital
• CHG-1 within 30 days of creating a charge on assets
• DIR-3 KYC update within 30 days of a director changing mobile, email or address

Common mistakes

Frequent problems are depositing TDS under the wrong section or assessment year, filing GSTR-3B before reviewing IMS, missing PF for new joiners, and paying professional tax only once a year in states that need monthly payment. Late GSTR-3B attracts late fees and 18% interest on unpaid tax.

Step by step

1. 1Close the month

   Book all sales, purchases and expenses by the 3rd.

2. 2Compute and pay TDS

   Deposit by the 7th.

3. 3Prepare GSTR-1

   Reconcile sales and file by the 11th or IFF by the 13th.

4. 4Run payroll

   Process salaries, PF, ESI and PT.

5. 5Pay PF and ESI

   Deposit and file ECR by the 15th.

6. 6Review IMS and GSTR-2B

   Accept or reject inward invoices.

7. 7File GSTR-3B

   File by the 20th, 22nd or 24th as applicable.

8. 8Reconcile banks

   Finish bank and ledger reconciliations before month end.