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Tag: GST Filing Deadlines

  • ANNUAL COMPLIANCE CHECKLIST FOR INDIAN STARTUPS & MSMES [2025 EDITION]

    INTRODUCTION

    Growth and sales alone don’t guarantee the successful operation of a Micro, Small, or Medium Enterprise (MSME) and a startup in India. Staying compliant with government regulations is equally crucial. As the Indian regulatory landscape continues to evolve, businesses need to understand and execute the legal, financial, and operational responsibilities that come with running a company.

    This 2025 edition of the annual compliance checklist provides an in-depth view of the compliance expectations for Indian startups and MSMEs, covering essential filings, tax requirements, and key statutory obligations. Whether you are running a startup registered as a Private Limited Company or a small business under the MSME category, this guide will help you stay on track with minimal fuss.

    WHY IS COMPLIANCE A MUST FOR MSMES IN INDIA

    MSMEs are the spinal cord of the Indian economy, contributing nearly 30% of GDP and employing more than 11 crore individuals. Nevertheless, a vast majority of MSMEs lag in compliance based on unawareness, absence of time, or unavailability of professional counsel.

    Here’s why compliance is essential early on:

    1. It keeps you away from legal fines and interest.
    2. It makes you liable for government schemes, grants, and loans.
    3. It makes you confident and creditworthy among investors, suppliers, and customers.
    4. It exempts you from notice by regulators and show-cause notices.

    1. MSME Compliance Requirements

    If your business is registered under the Udyam Registration system, you’re officially recognized as an MSME. However, registration alone does not suffice; maintaining compliance throughout the year is essential.

    Key MSME Compliance Requirements for 2025:

    • GSTR-1 Filing: This is a monthly return of all outward supplies (goods or services) done by GST-registered persons. The due date for filing GSTR-1 is the 11th of every month. Non-filing on time may attract a late fee of Rs 50 per day (Rs. 25 each under CGST and SGST).
    • GSTR-3B Filing: This is a self-assessment summary payment report of your GST payable. The due date is the 20th of each month. Late payment will attract interest at 18% and late fees.
    • Advance Tax First Installment: If your tax liability of the previous year exceeds Rs. 10,000, you must pay advance tax in four installments. The first installment (15%) is due by June 15, 2025.
    • MSME Form I Filing: Companies having overdue payable to MSME suppliers over 45 days have to submit MSME Form I. The submission due date for the period October 2024 to March 2025 is April 30, 2025. Non-compliance may result in penalties and, in extreme cases, imprisonment.
    • TDS Payment and Return Filing: If your MSME is withholding TDS on wages, rent, or contract payments, payment must be made by the 7th of the following month. The Q1 TDS return for April–June must be filed by July 31, 2025.
    • DPT-3 Filing: If you are a private or public limited company (not an LLP) and have received loans or deposits in the previous financial year, you are required to file Form DPT-3 on or before June 30, 2025.

    TMWala provides end-to-end compliance support from GST filings and advance tax calculations to TDS payment reminders so that MSMEs can focus on business growth without missing deadlines.

    2. Mandatory Compliance for Private Limited Company

    Private limited companies are bound by several mandatory annual and event-based compliances governed by the Companies Act, 2013, and regulations from the Ministry of Corporate Affairs (MCA). Failure to comply can result in heavy penalties, disqualification of directors, and potential legal action.

    Annual Compliance Requirements Include:

    • Annual General Meeting (AGM): Must be held within six months of the end of the financial year.
    • Director’s Report: Submission under Section 134 of the Companies Act is mandatory and must be included in the company’s annual filing.
    • Statutory Audit: All private limited companies are required to get their accounts audited annually, irrespective of turnover or profits.
    • Income Tax Return (ITR): Companies must file their ITR using Form ITR-6 annually, generally by October 31st.
    • Filing of AOC-4 and MGT-7: These forms relate to financial statements and annual returns, respectively, and must be filed within 30 and 60 days of the AGM, respectively.

    3. Compliance Calendar for Private Limited Company

    Below is a simplified calendar summarizing key due dates for May and June 2025:

    May 2025

    • May 7 – Payment of TDS for April
    • May 11 – Filing of GSTR-1 for April
    • May 20 – Filing of GSTR-3B for April

    June 2025

    • June 7 – Payment of TDS for May
    • June 11 – Filing of GSTR-1 for May
    • June 15 – First Installment of Advance Tax
    • June 20 – Filing of GSTR-3B for May
    • June 30 – Filing of DPT-3

    4. MSME Form I Filing

    MSME Form I is a mandatory filing for companies that have outstanding payments to MSME vendors for more than 45 days. This compliance aims to protect smaller suppliers from delayed payments by larger corporates. The form must be filed with the Registrar of Companies (ROC) by the specified due dates. 2025, the deadline for the October 2024 to March 2025 period is April 30.

    5. Udyam Registration Update

    Udyam Registration replaced the earlier Udyog Aadhaar system and is now mandatory for businesses that wish to access government benefits and schemes reserved for MSMEs.

    If your MSME has not yet migrated to Udyam Registration, this should be treated as a priority. The process is simple and digital, but it is essential to ensure the correct classification of your business based on investment and turnover.

    Once registered, MSMEs must also update any change in business status, including:

    • Change in turnover
    • Change in investment
    • Business name or address changes
    • Addition or closure of manufacturing or service activity

    Keeping your Udyam profile updated helps in a seamless application to various MSME schemes and avoids discrepancies in official records.

    TMWala can assist in Udyam Registration and timely profile updates, helping MSMEs remain eligible for schemes and avoid administrative delays.

    6. ROC Filing for Private Limited Companies

    ROC filings are statutory obligations under the Companies Act. All private limited companies must file various forms annually and during specific events.

    Common ROC Filings Include:

    • Form AOC-4: Filing of financial statements (due within 30 days of AGM)
    • Form MGT-7: Annual return of the company (due within 60 days of AGM)
    • Form DIR-3 KYC: KYC of Directors
    • Form DPT-3: Annual return of deposits
    • Form MSME-1: Half-yearly return on delayed payments to MSMEs

    Late filing of ROC forms attracts additional fees of Rs 100 per day per form, and failure to file for an extended period can result in the disqualification of directors and company strike-off.

    HOW NOT TO MAKE COMPLIANCE A STRESSFUL EXPERIENCE

    Compliance need not be stressful. The following tips shall make it easy:

    • Maintain a Compliance Calendar: Track all filing due dates using software or a shared calendar system.
    • Outsource to a CA: A professional will ensure nothing slips through the cracks.
    • Use Accounting Software: Software like Tally, Zoho Books, and QuickBooks calculates GST and taxes automatically.
    • Perform Monthly Reviews: Dedicate one day a month to check for outstanding filings or payments.
    • Keep All Records Handy: Use a cloud folder to store all invoices, challans, and certificates.

    WHAT HAPPENS IF YOU MISS A DEADLINE?

    Missing deadlines would have actual effects on MSMEs:

    • GST Returns: Rs 50 per day as a delay charge, and you may not be able to generate e-way bills.
    • Advance Tax: 1% per month interest on overdue payment.
    • ROC Filings (MSME-1, DPT-3): Monetary penalty and legal notice by the Ministry of Corporate Affairs.
    • TDS Returns: Rs 200 per day as a delay fee, along with interest on overdue payments.

    Evading such penalties is simple if you are properly informed and behave accordingly.

    CONCLUSION

    Compliance is not bureaucracy; it’s your license to operate, to expand, and to gain the trust of the market. For Indian startups and MSMEs, staying compliant ensures smooth operations, access to government schemes, and credibility with investors and regulators.

    From MSME Form I filing and ROC filing for private limited companies to Udyam Registration updates and GST deadlines, timely action is essential.

    Getting ahead of most companies with this May–June 2025 compliance checklist is already good enough, just read and act accordingly.

  • GST COMPLIANCE CHANGES EFFECTIVE JULY 2025: AUTO-LOCK, TIME BAR, & NEW E-WAY BILL PORTAL

    INTRODUCTION

    The GST return filing rule changes from July 2025 bring significant shifts in compliance requirements for businesses across India. Major updates include the GSTR-3B Auto-lock, strict 3-year GST return filing limit, late GST return penalty 2025and classification of time-barred GST returns. The introduction of e-way bill 2.0 ensures smoother logistics, while broader GST return filing changes 2025 mandate real-time accuracy. Taxpayers must utilize the GSTR-1A correction for July 2025 effectively and act on the guidance for how to file pending GST returns 2025.

    Non-compliance may lead to input tax credit blocked returns, and with the expected e-invoicing new threshold of 2025, even more businesses must digitize their processes. This guide about GST compliance will let you know all the information about the new rule change for GST return filing. Through automatic invoice matching, compliance monitoring, and timely warnings that make sure companies don’t miss deadlines or get out of compliance with GST requirements, TMWala can help businesses adjust to these changes.

    GST RETURN FILING RULE CHANGES FROM JULY 2025

    As of July 2025, a new rule for GST compliance has been introduced. These updates were made to improve GST compliance, such as GST return filing, revenue, time limit regarding this all and other GST-related compliances. Among the most impactful changes are the GSTR-3B, auto-lock, a strict 3-year return filing limit, and the launch of E-Way Bill 2.0. For more details, kindly refer to:

    Advisory regarding non-editable of auto-populated liability in GSTR-3B- Goods & Services Tax (GST) | News and Updates

    GSTR-3B AUTO LOCK

    A major update, “GST Return Filing Rule Changes from July 2025”(to be filed in August 2025) is the GSTR-3B, auto-lock of Table 3, which contains outward supply details.

    What’s Changing?

    • Until now, taxpayer can make amendments in Table 3 of the GSTR-3B, but now, after the changes, even if the data is automatically entered from GSTR-1 or IFF didn’t match their internal records.
    • From July 2025, any kind of manual editing by the taxpayer is disabled.
    • Content in Table 3 of GSTR-3B will now be auto-lock, sourced directly from:
      • GSTR-1 (Outward Supplies)
      • GSTR-1A (Corrections to GSTR-1)
      • IFF (for quarterly filers in QRMP scheme)

    Exceptions:

    • Reverse charge mechanism (RCM) liabilities can still be manually entered.
    • GSTR-1A Correction July 2025: Only one correction per return period is allowed, and it must be made through GSTR-1A before filing GSTR-3B.

    With this modification, there will be no more differences between summary returns and outgoing supply returns, and fewer audit flags will be raised when there are inconsistencies.

    3-YEAR GST RETURN FILING LIMIT

    A 3-year GST return filing limit has been set. Now, the GST portal will not allow return filing beyond 3 years from the due date, starting August 1, 2025. This applies to all types of GST returns, regardless of whether tax was payable or not.

    Covered Returns:

    • GSTR-1 (Outward Supplies)
    • GSTR-3B (Summary Returns)
    • GSTR-4 (Composition Taxpayer Return)
    • GSTR-5, 5A (Non-resident and OIDAR services)
    • GSTR-6 (Input Service Distributor)
    • GSTR-7, 8 (TDS/TCS)
    • GSTR-9, 9C (Annual Returns)

    The GST portal will automatically reject filing if returns are submitted after the three-year deadline. After these changes, the return filing became time-barred.

    TIME BARRED GST RETURNS

    Now, the taxpayers must file all pending GST returns due before August 1, 2022, by July 31, 2025, to avoid becoming permanently time-barred. For more details, kindly refer to:

    Consequences of not filing a return on time:

    • The taxpayer will not be able to file the return, even with the penalty.
    • Forfeiture of Input Tax Credit (ITC) related to those periods.
    • The taxpayer will receive to face assessment; tax notices, or must face legal action against them.
    • And due to continuous non-compliance, the GST registration of the taxpayer will also be cancelled.

    To remain in compliance, nil refunds must be submitted before the deadline, even if you made no sales or transactions.

    Businesses could use platforms like TMWala, which manage pending returns and automatically alert users of deadlines, to mitigate these risks.

    E-WAY BILL 2.0

    To reduce downtime and ensure seamless movement of goods, the E-Way Bill 2.0has been introduced. The official site is mentioned herewith:

    Key Features:

    • Infrastructure for the main portal’s backup
    • The two portals’ automatic real-time synchronization.
    • Beneficial during instances of high traffic or technical difficulties.
    • Especially helpful for carriers handling high shipment frequencies and heavy users.

    This guarantees seamless logistics operations and continuous e-way bill creation for products valued at over ₹50,000, whether for supply, inward purchase, or branch-to-branch transfers.

    GST RETURN FILING CHANGES 2025

    The taxpayers must reconsider their return filing tactics in light of the GST return filing changes for 2025.

    The key additions are:

    • Now, the manual modifications in GSTR-3B Table 3 are not allowed.
    • The only way for corrections is GSTR-1A.
    • All GST returns must be filed within a 3-year time limit.
    • To work better with the changes, switch to E-Way Bill Portal 2.0.
    • Stricter rules by GST authorities are resulting in less inconsistent data
    • Possible future auto-locking of ITC details from GSTR-2B.

    To adjust to these new changes, the businesses need to train their personnel, start using real-time invoice matching tools, and update their compliance platforms on a regular basis.

    By integrating your accounting data, finding discrepancies, helping with GSTR-1A repairs, and guaranteeing the timely submission of previous returns, all from a single platform, TMWala streamlines this procedure.

    GSTR-1A CORRECTION JULY 2025

    GSTR-1A becomes crucial when GSTR-3B, auto-locked. Before filing GSTR-3B, this return permits changes to previously filed GSTR-1 or IFF data.

    How It Works:

    • Adjust GSTR-1A to reflect any discrepancies in tax rates or outgoing supply quantities.
    • Must be submitted before filing GSTR-3B of the same period
    • Each return period is limited to one correction cycle.
    • The recipient’s GSTIN cannot be changed using this method.

    To prevent inaccurate GSTR-3B filings, buyers must track rejected invoices in real time and take prompt corrective action.

    LATE GST RETURN PENALTY 2025

    The system will permanently ban return filing if you fail the three-year deadline. Penalties could consist of:

    • Input Tax Credit loss for periods that were not filed.
    • Penalties under Sections 125 or 122 for failing to file returns or pay taxes
    • Late fees under Section 47 of the CGST Act, depending on the kind of return and tax due.

    To avoid this, make sure all backdated filings are done by July 31, 2025.

    HOW TO FILE PENDING GST RETURNS 2025

    Take prompt action if you have any past-due returns, particularly those from Financial Year 2017–18 to Financial Year 2021–22.

    1. Consolidate data with GSTR-1, IFF, and GSTR-3B after reviewing books.
    2. Correct inaccuracies on GSTR-1A prior to final filing.
    3. Before July 31, 2025, file all outstanding returns.
    4. Use a real-time IMS system to keep an eye on inconsistencies.
    5. Educate teams on the new regulations and the possible consequences of failing to file.

    INPUT TAX CREDIT BLOCKED RETURNS

    If previous returns are not filed before the completion of the 3-year deadline, the taxpayers’ working capital and tax liability will be immediately impacted.Hence, the related Input Tax Credit would be denied.

    This is especially concerning for businesses with:

    • Missed IFF/GSTR-1 submissions.
    • Discrepancies between GSTR-2B and GSTR-3B.
    • Incomplete purchase records or ITC reconciliation.

    Denial of ITC to your purchasers due to late or non-filing may also result in problems with your reputation and commercial relationships.

    E-INVOICING NEW THRESHOLD 2025

    The E-Invoicing turnover level is anticipated to decrease even more in 2025, although this has not been determined yet. More enterprises will be required to use electronic invoicing, particularly small and medium-sized organizations.

    If implemented:

    • Businesses must generate e-invoices in real-time for B2B transactions.
    • Integration with IRP portals and syncing with GSTR-1 will become mandatory.
    • Failure to comply could result in invalid invoices, blocked ITC, and supply chain disruptions.

    Start preparing your systems to adopt e-invoicing if your turnover is near the anticipated threshold (likely ₹5 Cr or less).

    CONCLUSION

    With the rollout of the GST return filing rule changes from July 2025, businesses must act swiftly to align with the stricter compliance framework. The GSTR-3B auto lock, 3 year GST return filing limit, and time barred GST returns make timely and accurate filings more critical than ever. Embracing tools like E-way bill 2.0,late GST return penalty 2025 and leveraging GSTR-1A Correction July 2025, are essential to avoid disruptions. To safeguard working capital and ITC eligibility, follow the steps under how to file pending GST returns 2025 and prepare for the likely e-invoicing new threshold 2025. Proactive compliance today will help businesses avoid input tax credit blocked returns and maintain seamless operations in the evolving GST landscape.

    Platforms like TMWala, which include intelligent compliance tools, GST checks, return filing automation, and reconciliation capabilities to guarantee complete alignment with the new GST standards, are crucial in assisting firms in adapting.

  • Everything You Need to Know About the GST Amnesty Scheme 2024–25

    INTRODUCTION

    The GST Amnesty Scheme 2024 introduced as an opportunity for the businesses and taxpayers as it will help in regulating their tax filling without the risk of penalties and interest. It helps in GST late fee waiver and work as GST interest waiver scheme. The scheme has been introduced under section 128 of the central Goods and Services Tax (CGST) Act, 2017. This scheme comes to help those who have a lot of GST dues. Under this scheme the taxpayer can outstand the tax liability just by paying principal tax amount, with a complete waiver of associated interest and penalties. By introducing such schemes government promote voluntary compliance and the hassle of long litigation process in GST cases.

    THE GST AMNESTY SCHEME 2024

    The Central Board of Indirect Taxes and customs (CBIC) has announced that the GST Amnesty Scheme 2024 will apply specifically to tax demands under section 73 of the CGST Act, 2017.

    Section 73 deals with the cases of non-payment or short payment of GST where there is no element of fraud or misrepresentation.

    The condition of the GST Amnesty scheme 2024 is that the businesses must pay the principal GST amount which is due and that too before the deadline then only there will be 100% waiver on penalties and interest. However, the scheme strictly excludes the tax demands under section 74 of CGST Act, 2017. As section 74 include factors of fraud, wilful misstatement, or suppression of facts. Businesses falling under section 74 will not be eligible to get benefit of GST Amnesty scheme 2024

    Organizations seeking clarity on their eligibility and calculation of dues can rely on TMWALA, which offers expert assistance in evaluating GST notices, assessing eligibility, and navigating the process efficiently.

    To get clarity about whether your business is eligible to get the benefit of GST Amnesty scheme 2024 or not, contact TMWALA.

    ELIGIBILITY CRITERIA

    To take advantage of the GST Amnesty Scheme 2024, businesses and taxpayers must satisfy specific conditions. The eligibility requirements are as follows:

    The specific conditions must be fulfilled to get benefit of this scheme. The eligibility criteria are as follows:

    • Falls under section 73:it is only applicable for those taxpayers who have received demand notice under section 73 of CGST Act,2017. Which deals with the cases involving non-payment and short payment of GST due to an error or omission. As the scheme strictly covers non fraudulent cases.
    • Relevant for the financial year 2017-2018, 2018-2019 and 2019-2020: the scheme is applicable on the GST liabilities of year 2017-2018, 2018-2019, 2019-2020 and any other year apart from this is not eligible for the benefit of this scheme.
    • Should not fall under Section 74: The GST for which the business is trying to get the benefit of the scheme should not fall under Section 74 as it deals with cases of fraud, willful misrepresentation or suppression of facts. So, the GST cases fall under this are excluded from getting the benefit of the scheme.
    • GSTR-9 annual return: GSTR-9annual returnis that taxpayers registered under GST must file, summarizing all monthly or quarterly returns (like GSTR-1 and GSTR-3B) filed during the financial year. It includes details of outward and inward supplies, input tax credit claimed, taxes paid, and any additional liability. Filing GSTR-9 is mandatory for businesses with an annual turnover above the prescribed threshold, and late filing can attract penalties and interest. Accurate filing ensures transparency, helps in reconciling annual data, and maintains compliance with GST regulations.

    TMWALA can help you understand whether your mark falls under section 73 or section 74 by evaluating your businesses GST history.

    KEY BENEFITS OF THE SCHEME

    The GST Amnesty Scheme 2024 provides multiple benefits to the businesses and taxpayer who are eligible for this scheme. The benefits it provides are as follows:

    • 100% waiver of interest and penalties: The GST who are eligible for this scheme gets help in GST late fee waiver and work as GST interest waiver scheme. After paying the required principal GST amount. This is beneficial for the businesses that have accrued substantial liabilities over the years.
    • Cost savings for small and medium sized enterprises: Small and Medium sized enterprises, which often operate in small areas or in localities, can achieve a considerate financial relief by settling their GST dues at a reduced cost under this scheme.
    • Avoid future legal disputes: by clearing GST dues under this scheme, the businesses can avoid lengthy legal battles which can occur in future. This scheme can be a precautional process which will save time, legal, costs and management bandwidth.
    • Protect against GST Registration cancellation: businesses GST can be cancelled due to non-compliance, which can affect the businesses reputation and operation. So to prevent that the GST Amnesty Scheme help businesses to protect their GSTIN and maintain the trade activities.
    • Simplified compliance: this scheme offers a simple and non-intrusive process. There is no audit requirement whatsoever, making it easier for businesses to resolve past issues and GST dues.

    This scheme makes the process streamlined and audit free, which makes it simpler than other traditional dispute resolution methods. TMWALA provides end to end support to ensure that businesses correctly take the benefit of this scheme.

    IMPORTANT DEADLINES

    The two deadlines related to GST Amnesty Scheme are:

    1. The payment of principal tax amount: Must be completed on or before March 31, 2025.
    2. Submission of required documents: Must be completed on or before June 30, 2025.

    Timely action is very essential in this case TMWALA help you to do so.

    • GST FILING DEADLINE EXTENSION CHALLENGES

    Although GST deadline extensions for filing provide temporary relief, they can disturb compliance habits, cause delay in input tax credits, and put both the taxpayers and the GST department to inconvenience. Eventually, this can result in cash flow problems, reconciliation difficulties, and regulatory challenges if not controlled appropriately.

    • GSTR-3B LATE FILING

    GSTR-3B late fillingcan result in serious ramifications for taxpayers in the form of late charges, interest on outstanding tax, and possible withholding of input tax credit (ITC) claims. Chronic delays also put the business in the radar of tax officials and affect the taxpayer’s compliance rating. Filing GSTR-3B on time and correctly is the key to preventing these penalties and smooth GST functioning.

    STEP-BY-STEP PROCESS TO AVAIL THE SCHEME

    The GST Amnesty Scheme is a time bond process; it requires attention to documentation and timing.

    • Step 1: Taxpayers must identify their outstanding liabilities first, for  the relevant financial years by reviewing GST demand notices under section 73. They should always be aware about the exact amount of principal tax.
    • Step 2: The payment of principal amount must be done on or before march 31, 2025 through the GST postal using Form GST DRC-03.
    • Step 3:After payment, the taxpayer must submit the appropriate application form based on the stage of the proceedings:
      • Form GST SPL-01: this form is used when the notice is issued, but no final order has been passed.
      • Form GST SPL-02: this form is used when the final order was already issues covering multiple tax period.
    • Step 4: if the taxpayer had already file any appeal against tax demand, then that appeal must be formally withdrawn before applying under the amnesty scheme.
    • Step 5: After all the required submissions are done, the GST department will verify all the details. Upon carefully verifying it if the department is satisfied, they will officially wave off the interest and penalty amounts, and the compliance will be updated accordingly.

    LEGAL UNDERSTANDING: SECTION 73 VS. SECTION 74

    Understanding the distinction between the two is very critical as it determines the eligibility whether the business can have the benefit of the scheme or not.

    Section 73 relates to cases of non-payment or underpayment of GST due to unintentional errors, such as accounting mistakes or clerical omissions. These are considered non-fraudulent cases and are covered under the Amnesty Scheme.

    • Section 73: Relates to the cases of non-payment or short payment of GST where there is no element of fraud or misrepresentation.
    • Section 74:Relates to the cases of non-payment or short payment of GST, which include factors of fraud, wilful misstatement, or suppression of facts.

    TMWALA can review your GST compliance history and help you distinguish between the section. Also determine in which section your business is falling.

    CONCLUSION

    The GST Amnesty Scheme 2024 is a substantial relief for taxpayers willing to clear arrears of GST due earlier without the onus of penalties and interest. It facilitates GST late fee waiver and is an effective GST interest waiver scheme, motivating businesses to comply voluntarily and sidestep lengthy litigation. Though the scheme provides temporary reprieve, it should be noted that GST filing deadline extension challenge since repeated delays can result in compliance failure and cash flow problems.

    Moreover, companies should be careful regarding GSTR-3Blate filing since it will invite penalties and affect input tax credit eligibility. On-time filing of GSTR-9 annual return is also important to ensure transparency and correct annual reconciliation of the tax information.

    In order to fully utilize the GST Amnesty Scheme 2024, businesses must act within the scheduled deadlines and get professional advice to ascertain eligibility and proper use.