MSME Form I Due by 31 October 2026: Does Your Company Really Need to File It?

COMPANY COMPLIANCE CHECK

MSME Form I Due by 31 October 2026

Check whether your company has payments pending to micro or small enterprises for more than 45 days.

First check applicability—do not file blindly

Under the amendment dated 15 July 2024, only specified companies having payments pending to a micro or small enterprise for more than 45 days from acceptance or deemed acceptance are required to furnish MSME Form I.

What is MSME Form I?

MSME Form I is a half-yearly return filed with the Registrar of Companies. It gives prescribed information relating to payments made or remaining outstanding to micro and small enterprise suppliers.

The reporting requirement arises under an order issued under Section 405 of the Companies Act, 2013. The form is presently available as a web-based form on the MCA V3 portal.

April–September

The half-yearly return for this period is ordinarily filed by 31 October.

October–March

The half-yearly return for this period is ordinarily filed by 30 April.

Who should check the filing requirement?

A company should carry out the applicability check where:

• It has purchased goods or services from a micro or small enterprise.
• The supplier qualifies as a micro or small enterprise under the applicable MSME framework.
• Payment remains pending for more than 45 days from acceptance or deemed acceptance.
• The company falls within the definition of a specified company under the governing order.

Important eye-opener

Do not identify MSME suppliers only from the ledger name. A supplier may have obtained Udyam registration during the year, changed its classification or supplied an incorrect registration number. Obtain and verify the relevant supplier declaration and Udyam details.

Understanding the payment period

Under Section 15 of the MSMED Act, the written credit period agreed between the buyer and supplier cannot exceed 45 days from acceptance or deemed acceptance. Where there is no written agreement, payment is linked to the appointed day under the Act.

Situation	Practical review
Goods accepted without objection	Consider the date of actual delivery and acceptance.
Service completed	Check service completion, approval and invoice records.
Written objection raised	Keep evidence of the objection and its resolution.
Part payment made	Calculate the ageing of the unpaid invoice balance.

Do not rely only on the closing creditor balance

A year-end or half-year creditor balance is not sufficient for preparing MSME Form I. The company should review invoices and payments during the entire reporting period.

The revised web form captures the number and amount of transactions under different payment and outstanding categories, including payments made within or after 45 days and amounts outstanding for different periods.

Invoice-wise preparation checklist

• Obtain the complete trade-payables ledger.
• Collect supplier-wise Udyam registration details.
• Separate micro and small enterprises from medium enterprises.
• Verify the date of delivery or completion of service.
• Check the invoice date and acceptance date separately.
• Review the written credit terms with each supplier.
• Map payments against the correct invoices.
• Identify part payments, advances and credit notes.
• Calculate invoice-wise ageing beyond 45 days.
• Reconcile the working with the general ledger and financial statements.

Most commonly missed points

Medium enterprises included

The filing focuses on micro and small enterprise suppliers—not every entity registered as an MSME.

Ageing from invoice date

The legal test refers to acceptance or deemed acceptance, which may differ from the invoice date.

Only closing balances checked

Payments made after 45 days during the period may also require correct reporting in the form.

MSME Form I and financial statements are separate checks

Filing the form does not replace MSME disclosures in the financial statements, interest evaluation, confirmation of supplier status or examination of applicable income-tax consequences. Each requirement should be reviewed separately.

Example

A company received goods from a registered micro enterprise and accepted them without objection. The payment remained outstanding beyond 45 days.

The company should examine MSME Form I applicability, calculate the correct outstanding amount invoice-wise and retain the purchase, receipt, acceptance, Udyam and payment records supporting the return.

Documents to keep ready

• Supplier master and trade-payables ledger
• Udyam certificates or supplier declarations
• Purchase invoices and debit or credit notes
• Goods-receipt or service-completion records
• Purchase orders and written payment terms
• Bank statements and payment allocation details
• Invoice-wise ageing and reconciliation
• Details of disputes or written objections

Professional assistance

GURURAAJA SANJAY & CO., CHARTERED ACCOUNTANTS assists companies with MSME supplier identification, invoice-wise ageing, ledger reconciliation, financial-statement disclosure review and preparation of MSME Form I supporting workings.

Need help checking MSME Form I applicability?

Complete an invoice-wise review before filing and preserve clear supporting records.

Call 7760252581 WhatsApp Us

Official references: MCA Order dated 22 January 2019 , S.O. 2751(E) dated 15 July 2024 , and Ministry of MSME delayed-payment guidance . Information verified on 9 October 2026. Applicability should be checked against the company’s supplier records and the law in force on the filing date.

Q2 TDS Return Due 31 October 2026: 12 Checks Businesses Must Complete Before Filing

INCOME TAX • OCTOBER 2026

Q2 TDS Return Due 31 October 2026: Do These 12 Checks Before You File

A return can pass validation and still contain a wrong PAN, section, rate or challan mapping. A careful review now can reduce corrections and unwanted notices later.

Important 2026 change: Under the Income-tax Rules, 2026, the current quarterly TDS forms are Form 138 for salary, Form 140 for non-salary payments to residents and Form 144 for non-salary payments to non-residents. These replace the familiar Form 24Q, Form 26Q and Form 27Q numbers.

What is due on 31 October?

The quarterly TDS statement for the period 1 July to 30 September 2026 is due on 31 October 2026. This applies to deductors who must report TDS for Q2.

Current form	Earlier name	Use
Form 138	24Q	Salary, and specified pension/interest reporting
Form 140	26Q	Non-salary payments to residents
Form 144	27Q	Non-salary payments to non-residents

The most commonly missed point

Do not reconcile only the total TDS. Match every deductee line with the books and challan. The PAN, payment or credit date, nature of payment, applicable provision, rate, amount paid, tax deducted, tax deposited and challan allocation must agree. A correct grand total cannot cure a wrong deductee line.

12 last-minute checks for businesses

1. Books vs TDS report
Review salary, interest, contract, rent, commission, professional fees, purchase transactions and other applicable payments.

2. PAN and name
Validate every deductee PAN. One character error may deny proper credit to the payee.

3. Resident status
Do not report a non-resident payment in the resident statement merely because the vendor has an Indian bank account.

4. Correct provision and rate
Check the real nature of each payment and the law applicable on the date of deduction.

5. Credit or payment date
Review entries credited to vendor accounts, suspense accounts and provisions—not only bank payments.

6. Lower or nil deduction
Check the certificate number, validity period, payee and available limit before using a reduced rate.

7. Declarations
Where a valid declaration is relied upon, keep the form, acknowledgement and supporting eligibility review ready.

8. Challan match
Match BSR code, challan serial number, deposit date, amount and the amount used against deductee rows.

9. Short deduction or delay
Calculate and pay applicable interest or fee before filing, wherever required.

10. Purchase TDS
Review high-value purchases and threshold tracking across branches and ledgers, where purchase-related TDS applies.

11. Non-resident payments
Examine taxability, treaty documents and remittance reporting separately; do not apply resident rules automatically.

12. Utility and verification
Use the latest RPU/FVU version, select the correct tax year and quarter, e-verify, and save the acknowledgement.

A simple practical example

A business pays professional fees to three consultants. Its challan total may be correct, but one consultant’s PAN or payment section may be wrongly entered. The statement can still create credit or default issues for that person. Therefore, reconcile vendor-wise and challan-wise, not only total-wise.

Documents to keep ready

• Ledger extract and payment register for July to September
• Deductee PAN master and resident-status confirmation
• TDS challans and challan-status details
• Lower/nil deduction certificates and declarations, if used
• Non-resident agreements, tax-residency and remittance records, where applicable
• Latest RPU/FVU file, validation report and filing acknowledgement

Best practice: Complete the reconciliation a few days before 31 October. Filing on the final day leaves little time to correct PAN, challan or validation errors.

Official references

Income Tax Department: Form 138 user manual • Form 140 user manual • Income-tax Rules, 2026 form mapping.

Need help reviewing your Q2 TDS statement?

Gururaaja Sanjay and Co can assist with ledger reconciliation, challan matching and quarterly TDS filing based on your facts and records.

Call 7760252581 WhatsApp Us

Disclaimer: This article is for general educational information only. TDS treatment depends on the transaction, status of the payee, documents and applicable law. Please obtain professional advice for your facts. Due dates may change through an official order; check the Income Tax portal before filing.

GST E-INVOICE CONTROL

₹5 Crore+ Businesses: One Late E-Invoice Can Get Blocked After 30 Days

Invoice prepared in your accounting software does not automatically mean a valid e-invoice exists. The IRN must be generated within the permitted reporting window.

The rule businesses must remember

From 1 April 2025, taxpayers with annual aggregate turnover of ₹5 crore or more must report applicable e-invoices within 30 days from the document date. The restriction covers invoices, credit notes and debit notes. If the document is older than the permitted period, the Invoice Registration Portal restricts IRN generation.

Why this is more than a billing issue

A sales invoice may be entered in the books, shared with the customer and included in internal reports. But where e-invoicing applies, the document also needs a valid Invoice Reference Number and signed QR code generated through an authorised IRP.

If the finance team discovers the missed document after the reporting window, generating the IRN may be blocked. This can disturb customer documentation, GST return reconciliation and the audit trail.

Important eye-opener

Preparing an invoice is not the final control. Your team must confirm that the IRN and QR code were actually generated. A JSON upload, API request or ERP entry can fail even though the invoice remains visible in the accounting system.

Documents covered by the 30-day restriction

01

Invoices

Applicable supply invoices requiring e-invoice reporting.

02

Credit notes

Credit notes covered by the e-invoice system must also be reported on time.

03

Debit notes

Do not leave manual debit notes outside the IRN review process.

10 checks your business should perform

1. Confirm applicability
Check the GSTIN, entity category, turnover position and nature of the document before assuming e-invoicing applies or does not apply.

2. Track document age daily
Create an ageing report from the invoice date. Do not wait for the monthly GST return process.

3. Match invoice to IRN
Every applicable document in the sales register should have the corresponding IRN and signed QR code.

4. Review failed uploads
Keep a separate exception queue for validation failures, API errors and rejected JSON files.

5. Cover all branches
Include invoices prepared by branches, warehouses and decentralised billing teams in one control report.

6. Check manual documents
Review manually prepared credit notes, debit notes and emergency invoices separately.

7. Avoid unnecessary backdating
Approvals and billing delays should not lead to documents being created with old dates without review.

8. Verify master data
Check recipient GSTIN, place of supply, document type, taxable value, tax rate and HSN/SAC before upload.

9. Reconcile with GSTR-1
Compare the e-invoice register with the sales register and GSTR-1 data. Investigate every unmatched document.

10. Preserve evidence
Save IRN details, signed QR data, error logs and the person responsible for clearing each exception.

A simple daily control

Report	What to compare	Action
Sales register	Applicable documents vs IRN register	Identify missing IRNs
Exception report	Rejected and failed uploads	Correct errors immediately
Ageing report	Unregistered documents by date	Escalate before the limit
GSTR-1 working	Sales, IRP data and return tables	Resolve differences

Example

A branch creates a debit note but does not send it through the IRP because it was prepared manually. The head office notices it only during the next month’s GSTR-1 reconciliation. For a taxpayer covered by the 30-day restriction, this delay may prevent IRN generation. A daily branch-wise exception report would have identified it earlier.

Who should own the control?

The billing team should generate the document correctly. The GST or finance team should verify IRN generation and reconcile the registers. The system administrator should monitor API failures. Management should receive an ageing report of unresolved documents. Giving the full responsibility to only one person increases the chance of missed invoices.

Professional assistance

GURURAAJA SANJAY & CO., CHARTERED ACCOUNTANTS assists businesses with e-invoice applicability review, sales-to-IRN reconciliation, GST return checks and design of practical compliance controls based on their records.

Need help reviewing your e-invoice process?

Identify missing IRNs and reporting gaps before old documents reach the system restriction.

Call 7760252581 WhatsApp Us

Official reference: GSTN Advisory No. 543 and the GSTN-authorised IRP release. Information verified on 11 October 2026.

Disclaimer: This article is for general education. E-invoice applicability depends on turnover, taxpayer category, nature of supply and notifications applicable to the taxpayer. Check the GST portal and obtain professional advice for your facts.

LLP ANNUAL COMPLIANCE

LLP Form 8 Due by 30 October 2026: Even a Nil-Business LLP Must Check This

No sales, no bank movement or no profit does not automatically remove the annual MCA filing requirement.

What is due?

Every LLP must file its Statement of Account and Solvency in Form 8 within 30 days from the end of six months of the financial year. For an LLP whose financial year ended on 31 March 2026, the normal filing date is 30 October 2026.

What does Form 8 contain?

Form 8 is not only a turnover declaration. It records the LLP’s financial position and includes a statement relating to its solvency. It is filed under Section 34 of the LLP Act, 2008 read with Rule 24 of the LLP Rules, 2009.

01

Statement of solvency

The designated partners make the prescribed declaration concerning the LLP’s ability to meet its liabilities.

02

Statement of accounts

Assets, liabilities, income and expenditure must agree with the final books and supporting schedules.

03

Signing and certification

The designated partners sign the filing. Professional certification and audit applicability require a separate check.

Important eye-opener: Nil activity does not mean nil compliance

An LLP may have no revenue but still have partner contribution, bank balance, preliminary expenses, professional fees, loans or unpaid liabilities. Form 8 applies to every registered LLP unless a specific legal exception applies. The figures should not be entered as zero merely because business activity stopped.

10 checks before filing LLP Form 8

1. Finalise the books
Complete the bank, debtor, creditor, loan, capital and expense reconciliations before preparing the form.

2. Match Form 11 details
Compare partner names, contribution and changes with the annual return already filed.

3. Verify partner contribution
Do not confuse contribution agreed in the LLP agreement with the amount actually introduced and recorded.

4. Confirm turnover
Reconcile turnover with GST returns, invoices, bank receipts and the income-tax working.

5. Review solvency carefully
The declaration should reflect the actual ability of the LLP to meet liabilities—not a routine selection.

6. Check secured liabilities
Reconcile loans and charges with lender records and MCA charge filings, wherever applicable.

7. Examine contingent liabilities
Review guarantees, disputes, demands and commitments that may require disclosure.

8. Review MSME information
Identify micro and small enterprise suppliers and prepare the prescribed disclosure based on reliable records.

9. Validate DSC and portal access
Ensure the designated partners’ DSCs are valid, associated and usable before the last week.

10. Save the filed record
Preserve the final form, attachments, challan, SRN and acknowledgement with the signed accounts.

Audit and professional certification are not the same question

Rule 24(8) contains the LLP account-audit exemption using turnover of ₹40 lakh and contribution of ₹25 lakh. The webform’s professional certification requirement must also be checked from the current MCA instruction kit. Do not assume that “no audit” automatically means that no professional certification is needed.

The wording and threshold tests are frequently oversimplified in compliance summaries. Check both turnover and contribution, the actual Rule 24 position, the LLP agreement and the current webform instructions before selecting the declaration or certification route.

Question	Correct approach
Is Form 8 required?	Check every registered LLP, including nil-activity LLPs.
Is statutory audit required?	Apply Rule 24(8) to the LLP’s turnover and contribution.
Is professional certification required?	Apply the current MCA Form 8 instruction kit separately.
Is income-tax filing covered?	No. MCA Form 8 and the LLP’s income-tax return are separate compliances.

Common mistakes that cause trouble

• Using provisional figures that do not agree with the final books
• Showing partner contribution incorrectly
• Ignoring expenses and liabilities because there was no revenue
• Treating the solvency declaration as a routine checkbox
• Missing MSME or contingent-liability disclosures
• Waiting until the final day to associate DSCs or resolve portal errors

Late filing can become expensive

Additional filing fees under the applicable LLP fee schedule increase with the period of delay and differ for small LLPs and other LLPs. Filing early also leaves time to correct book differences and DSC issues.

Professional assistance

GURURAAJA SANJAY & CO., CHARTERED ACCOUNTANTS assists LLPs with book finalisation, audit-applicability review, partner-contribution reconciliation and preparation of Form 8 supporting records.

Need help reviewing your LLP Form 8?

Complete the accounts, threshold checks and supporting records before filing.

Call 7760252581 WhatsApp Us

Official references: Section 34 of the Limited Liability Partnership Act, 2008; Rule 24 of the Limited Liability Partnership Rules, 2009; and the MCA Instruction Kit for LLP Form 8. Information verified on 12 October 2026.

Disclaimer: This article is for general educational information. Filing, audit and certification requirements depend on the LLP’s financial year, turnover, contribution, records and law in force. Verify the MCA portal and obtain professional advice before filing.

Company Incorporated? New DPIIT Startup Recognition Limits Could Benefit More Founders in 2026

STARTUP INDIA UPDATE

Company Incorporated? Check Your DPIIT Startup Recognition Eligibility

Incorporation creates your entity. DPIIT Startup recognition is a separate application.

Important 2026 change

The general turnover ceiling for DPIIT Startup recognition has increased from ₹100 crore to ₹200 crore. The revised framework also provides extended limits for qualifying DeepTech startups.

Incorporation and DPIIT recognition are different

Process	What it means
Entity incorporation	Creates the company, LLP or registered partnership under the applicable law.
DPIIT recognition	Recognises an eligible entity as a startup under the Startup India framework.
Income-tax benefit	Requires separate eligibility and compliance with the applicable tax conditions.

Eye-opening point

Adding the word “Startup” to a company’s name or mentioning “startup” in its business profile does not give DPIIT recognition. An eligible entity must apply through the Startup India portal and obtain the Certificate of Recognition.

Revised recognition limits

General Startup

• Up to 10 years from incorporation
• Turnover ceiling of ₹200 crore
• Innovation or scalable-business conditions apply

DeepTech Startup

• Up to 20 years from incorporation
• Turnover ceiling of ₹300 crore
• Must satisfy the notified DeepTech conditions

Who can generally apply?

• A private limited company
• A registered limited liability partnership
• A registered partnership firm
• An entity within the prescribed age and turnover limits
• An entity working towards innovation or improvement
• A business having potential for employment or wealth creation
• An entity not formed merely by splitting or reconstructing an existing business

Eligibility should be checked against the exact notification and the facts of the business. Merely being newly incorporated is not sufficient.

What should the startup explain?

The application should clearly explain the business model instead of using only general words such as “innovative platform” or “technology solution”.

Problem

What practical problem does the startup solve?

Solution

How is the product, service or process different or improved?

Scalability

How can the business expand and create employment or wealth?

Practical application checklist

• Confirm the correct legal name, CIN, LLPIN or registration number
• Check incorporation date and present entity status
• Confirm turnover for every financial year since incorporation
• Prepare a clear business and innovation description
• Explain the problem, solution and target customers
• Explain employment-generation or wealth-creation potential
• Keep incorporation documents and authorised-person details ready
• Ensure the entity’s email address and mobile number are used
• Review all declarations before submitting the application
• Download and preserve the recognition certificate after approval

Common application mistakes

• Assuming that incorporation automatically provides recognition
• Providing a vague innovation description
• Using inconsistent business activities across documents
• Entering an incorrect incorporation date or turnover
• Claiming to be DeepTech without checking the notified definition
• Assuming every Startup India benefit becomes automatic
• Allowing an outside consultant to control the startup’s login credentials

Recognition is not automatic tax exemption

DPIIT recognition and the income-tax deduction commonly referred to as Section 80-IAC involve separate eligibility requirements. Recognition alone should not be treated as confirmation of a tax holiday.

After recognition, do not ignore regular compliance

• Maintain proper books from the first transaction
• Keep founders’ personal expenses separate
• Complete ROC or LLP annual filings
• Check GST, TDS, payroll, PF and ESI applicability
• Document share capital, loans and investments correctly
• Preserve contracts, invoices and intellectual-property records

How Gururaaja Sanjay and Co can assist

We assist founders with entity selection, incorporation, DPIIT eligibility review, recognition documentation, accounting setup and applicable tax and regulatory compliance. Applications are prepared based on the startup’s actual documents and business model.

Building an innovative business?

Check your DPIIT recognition eligibility and organise the supporting information properly.

Call 7760252581 WhatsApp Us

Official sources: Startup India recognition guidance and the revised framework under G.S.R. 108(E), dated 4 February 2026. Information verified on 7 October 2026. Recognition and individual benefits remain subject to their respective eligibility conditions.

GST Input Tax Credit Missing or Mismatched? Complete These Checks Before Filing GSTR-3B

GST ITC CHECKLIST

GST Input Tax Credit Missing or Mismatched?

Match purchase invoices, books and GSTR-2B before filing GSTR-3B.

An invoice in your books is not enough

The purchase register may contain GST, but the credit should be claimed only after checking the legal conditions, GSTR-2B status and business purpose.

What is GSTR-2B?

GSTR-2B is an auto-drafted, read-only Input Tax Credit statement generated from details furnished through specified returns and statements by suppliers and other reporting persons.

It helps a business identify the invoice-wise credit appearing on the GST portal. It should be compared with the purchase register before the ITC amount is reported in GSTR-3B.

Important eye-opener

An invoice appearing in GSTR-2B is not, by itself, final proof that ITC is eligible. Blocked credit, personal expenditure, non-business purchases and other ineligible items must still be removed.

Basic conditions for claiming ITC

Valid document

Keep a valid tax invoice, debit note or other permitted document.

Supplier reporting

The supplier should correctly report the invoice details.

Receipt of supply

The goods or services should have been received.

Return compliance

The recipient must comply with the applicable return conditions.

Three-way matching before GSTR-3B

Record	What to verify
Supplier invoice	GSTIN, invoice number, date, taxable value and tax amount
Purchase register	Correct accounting, business purpose, expense category and GST ledger
GSTR-2B	Whether the correct invoice and credit appear for the relevant GSTIN
GSTR-3B working	Eligible credit, reversals, reclaimed credit and net amount proposed to be claimed

Last-minute ITC checklist

• Download GSTR-2B for the correct GSTIN and return period.
• Match invoice number, date, taxable value and tax amount.
• Identify invoices recorded in books but missing from GSTR-2B.
• Identify GSTR-2B invoices not recorded in the books.
• Check duplicate invoices and duplicate credit.
• Review credit notes and debit notes separately.
• Exclude personal and non-business expenses.
• Review blocked credits under Section 17(5).
• Check reverse-charge transactions and their payment status.
• Document reasons for credit kept on hold or reversed.

Why can an invoice be missing from GSTR-2B?

• The supplier has not reported the invoice.
• The supplier entered an incorrect customer GSTIN.
• The invoice number, date or value was entered incorrectly.
• The supplier reported the document after the relevant cut-off.
• The purchase was recorded under the wrong GST registration.
• An amendment or credit note has changed the reported value.

Do not simply increase the GSTR-3B figure

If credit in the purchase register is higher than the eligible amount supported by the GST records, first identify the invoice-level reason. Obtain correction from the supplier where required and preserve the reconciliation.

Credits commonly requiring special review

Motor vehicles

Eligibility depends on the nature and use of the vehicle and statutory exceptions.

Food and employee benefits

Review blocked-credit provisions and any applicable exceptions.

Construction-related costs

Credits connected with immovable property require careful legal examination.

Keep a proper reconciliation file

Preserve the downloaded GSTR-2B, purchase register, invoice-level matching, supplier follow-up, reversal working and final GSTR-3B computation. This gives management a clear audit trail and helps answer future queries.

Professional assistance

Gururaaja Sanjay and Co assists businesses with GST return review, invoice-level ITC reconciliation, supplier mismatch identification, reversal workings and maintenance of supporting compliance records.

Need help reviewing your GST ITC?

Organise the reconciliation before filing and keep clear supporting records.

Call 7760252581 WhatsApp Us

Official references: Section 16 of the CGST Act, Section 17 of the CGST Act, and GST Portal GSTR-2B guidance. Information verified on 8 October 2026. Eligibility depends on the facts, documentation and law applicable to each transaction.