Q1 MSMEs Compliance Checklist
admin
07-05-2025
Growth and sales alone to run a Micro, Small, or
Medium Enterprise (MSME) in India — government compliance also matters. MSMEs
do have some fiscal, tax, and legal requirements to complete on a quarterly
basis. Missing these deadlines can lead to penalties, interest fees, and
compliance issues affecting your funding, reputation, and operations.
As we head into the second quarter of Q1 (April to
June), you should have an idea of what's due in May and June 2025, and how
MSMEs can stay compliant with the minimum fuss. This blog is your quick,
current checklist, explained in plain English a 5th-grader can read. It's
informative, actionable, and written especially for business owners who don't
have to be a finance wizard but want their business to keep running smoothly.
Why Compliance Is 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 on compliance based on unawareness,
absence of time, or unavailability of professional counsel.
Here's why compliance is essential early on:
·
It keeps you away from legal fines and
interest.
·
It makes you liable for government schemes,
grants, and loans.
·
It makes you confident and creditworthy
among investors, suppliers, and customers.
·
It exempts you from notice by regulators
and show-cause notices.
Compliance Key Dates for May & June
2025
Now let us understand the main statutory compliances
during these two months.
1. 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 May 11 and June 11, 2025. Non-filing on time may attract a late fee
of ?50 per day (?25 each under CGST and SGST), subject to a maximum ceiling.
2. Filing of GSTR-3B
This is a self-assessment summary payment report of
your GST payable. It is payable on May 20 and June 20, 2025. Late payment will
attract late fees as well as 18% interest on overdue tax.
3. Advance Tax – First Installment:
If your tax liability of the previous year is over
?10,000, you have to pay advance tax in four equal quarterly installments. Your
first quarter (15% of the estimated tax for the year) needs to be deposited by
June 15, 2025. Penalties for late payment under the Income Tax Act's Sections
234B and 234C.
4. DPT-3 Filing (for Companies):
If you are a private or public limited company (not an
LLP) who had received loans or deposits in the previous immediate financial
year, then you will be required to file DPT-3 on or before June 30, 2025.
Non-filing can invite a penalty of ?5,000 to ?1,00,000 and ?500 per day.
5. Filing of MSME Form-1
Companies having overdue payable to MSME suppliers in
excess of 45 days have to submit MSME Form-1. The submission due date between
October 2024 and March 2025 is April 30, 2025. Non-compliance may result in
penalties and in extreme cases imprisonment.
6. Payment of TDS and Submission of Return
If your MSME is withholding TDS on wages, rent, or
contract payments, you need to pay on the 7th of each month (May 7, June 7).
And the Q1 TDS return also needs to be filed on July 31, 2025, on the proper
form (Form 26Q, 24Q, etc.).
Simplified Compliance Calendar – May &
June 2025
Below is a quick summary of what you need to do:
May 7: April TDS Payment
May 11: Due date for
Filing of GSTR-1 for April
May 20: Due date for
Filing of GSTR-3B for April
June 7: Payment date of
TDS for May
June 11: Due date for
Filing of GSTR-1 for May
June 15: Advance Tax
(First Installment)
June 20: Due date for
Filing of GSTR-3B for May
June 30: Date for Filing
of DPT-3
How Not to Make Compliance a Stressful
Experience
Compliance need not be stressful. The following tips
shall make it easy:
Maintain a Compliance Calendar:
Maintain a list of filing due dates with software or Google Calendar.
Outsource to a CA:
A professional will ensure nothing slips between their fingers.
Use Accounting Software:
Accounting software Tally, Zoho Books, and QuickBooks calculate GST and taxes
automatically.
Perform Monthly Reviews:
Spend one day each month checking outstanding compliances.
Keep All Records Handy: Keep
invoices, TDS certificates, and tax challans on a cloud folder.
What Happens If You Miss a Deadline?
Missing deadlines would have actual effects on MSMEs:
GST Returns:
?50 per day as 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:
?200 per day as delay fee, along with interest on overdue payments.
Evading such penalties is simple if you are properly
informed and behave accordingly.
How Our CA Firm Empowers MSMEs like Yours
Being a team of experienced chartered accountants and
financial planners, we offer MSMEs end-to-end compliance management. Our
services are:
·
Early GST filing and reconciliation
·
Accurate estimation and payment of advance
tax
·
ROC form filing such as MSME-1, DPT-3
·
Deduction, deposit, and preparation of
return of TDS
·
Reminders and support on dedicated basis
for compliance
We understand that MSMEs are cost- and time-sensitive.
Hence, we manage your compliances, so you focus on business expansion.
Frequently Asked Questions (FAQs)
Q1. I run a small shop.
Do I need to file GSTR-1 monthly?
If you are GST-registered and have an annual turnover
exceeding ?5 crore, quarterly GSTR-1 filing is mandatory. Otherwise, quarterly
filing may be optional.
Q2. What is the consequence if I fail to
pay advance tax?
You will attract interest under Sections 234B and
234C, on top of your overall tax payable.
Q3. Does DPT-3 apply to every business?
No, DPT-3 is only for companies (private/public) and
not for sole proprietorships and partnership firms.
Q4. I missed the filing of MSME-1 in
April. Can I now file it?
Technically, the deadline is strict, but you can file
late with charges. Meet a CA ASAP.
Final Words
Compliance is not
bureaucracy — it's your license to operate, to expand, and to gain the trust of
the market. Miss a deadline, and your MSME loses money, time, and mind. Getting
ahead of most companies with this May–June 2025 compliance checklist is already
good enough