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MSME & Startup Compliance Calendar 2026–27

The compliance year for an MSME or a DPIIT-recognised startup in FY 2026–27 — Udyam updates, the MSME-1 half-yearly return, startup status limits to watch, and the ordinary tax...

Vikas Sharma Tax & Compliance Expert
4 min read 19 views Updated Sep 11, 2026 Expert Reviewed Medium Complexity
MSME & Startup Compliance Calendar 2026–27
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Last updated: September 2026Verified against: Government sources
Quick Answer

The compliance year for an MSME or a DPIIT-recognised startup in FY 2026–27 — Udyam updates, the MSME-1 half-yearly return, startup status limits to watch, and the ordinary tax and ROC obligations that apply regardless of status.

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MSME and startup status add a small number of obligations of their own, and do not remove any of the ordinary ones. This calendar covers both — what the status requires, and what still applies underneath it.

Status-Specific Obligations

ObligationWhenApplies to
Update investment and turnover on the Udyam portalAnnually, after the year's returns are filedEvery Udyam-registered enterprise
MSME-1 — half-yearly return of dues to micro and small suppliers outstanding beyond 45 days31 October 2026, for April to SeptemberCompanies with such dues
MSME-1, second half30 April 2027, for October to MarchCompanies with such dues
Review whether the enterprise has crossed a classification thresholdAfter the year endEvery MSME
Check remaining startup eligibility — ten years and ₹100 croreAnnuallyDPIIT-recognised startups
Claim the income tax holiday, where the board certificate is heldIn the return, for the years chosenEligible startups

MSME-1 is an obligation of the buyer, not the supplier. It is filed by companies that owe money to micro and small enterprises beyond 45 days. If you are the MSME supplier you do not file it — but you should know that your customer has to, because it is a strong lever in a payment conversation.

The Ordinary Compliance Year Underneath

ObligationDue
Advance tax instalments (s.407, s.408)15 Jun, 15 Sep, 15 Dec 2026 and 15 Mar 2027
Monthly TDS deposit7th of the following month; 30 April 2027 for March
Quarterly TDS statements31 Jul, 31 Oct 2026, 31 Jan, 31 May 2027
GST outward supply return and summary return11th and 20th monthly, or the quarterly dates
GST annual return31 December
Tax audit report under s.63, where applicableOne month before the return due date
Income tax return (s.263)31 July, 31 October or 30 November as applicable
ROC annual filings, for companies and LLPsBy reference to the AGM; LLP Form 11 by 30 May and Form 8 by 30 October
DIR-3 KYC30 September 2026
Provident fund and state insurance15th of each month

Watch the Thresholds

  • MSME reclassification. Crossing either the investment or the turnover limit moves you into the next category and changes which benefits apply. The micro and small preference in government procurement is the one most often lost without anyone noticing.
  • Startup status expiry. Recognition ends at ten years from incorporation, or when turnover first exceeds ₹100 crore. If you intend to use the three-year tax holiday, plan which years to claim well before the window closes.
  • GST registration. A growing business crosses the registration threshold, then the e-invoicing threshold, then the audit and reconciliation thresholds.
  • Headcount. Provident fund at 20 employees, state insurance at 10, an internal complaints committee at 10. Each is triggered by hiring, not by revenue.

Choose your tax holiday years deliberately. The startup deduction is for three consecutive years chosen out of the first ten. Claiming it in early loss-making years wastes it. The value is in claiming it in the first three consecutive profitable years, which requires you to be tracking the ten-year window rather than reacting to it.

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Key Facts About MSME

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who has to file MSME-1?

Companies that owe money to micro or small enterprises for more than 45 days. It is the buyer's obligation, not the supplier's, and it is filed half-yearly — by 31 October for April to September, and by 30 April for October to March.

Do I need to update my Udyam registration every year?

Yes. Investment and turnover should be updated after your returns for the year are filed, since the portal draws those figures from your income tax and GST records. Crossing a threshold reclassifies the enterprise and changes which benefits apply.

Over 90% of compliance penalties in India arise from missed due dates — timely handling can save businesses thousands of rupees each year.

— TaxClue Compliance Desk

MSME: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Frequently Asked Questions
Who has to file MSME-1?
Companies that owe money to micro or small enterprises for more than 45 days. It is the buyer's obligation, not the supplier's, and it is filed half-yearly — by 31 October for April to September, and by 30 April for October to March.
Do I need to update my Udyam registration every year?
Yes. Investment and turnover should be updated after your returns for the year are filed, since the portal draws those figures from your income tax and GST records. Crossing a threshold reclassifies the enterprise and changes which benefits apply.
When does startup recognition expire?
At ten years from incorporation, or earlier if turnover exceeds ₹100 crore in any financial year. Both limits should be monitored annually, particularly if you intend to use the three-year income tax holiday before the window closes.
Which three years should I claim the startup tax holiday in?
Three consecutive years of your choosing out of the first ten. Claiming in loss-making years wastes the benefit, so the value comes from claiming the first three consecutive profitable years — which means tracking the ten-year window rather than reacting to it.
Does MSME status reduce my other compliance obligations?
No. MSME and startup status add benefits and a small number of extra obligations. Income tax, TDS, GST, ROC and labour law obligations apply in full underneath, determined by turnover, entity type and headcount as they would be for any business.
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Vikas Sharma VERIFIED EXPERT
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Experienced in company registration, GST, trademark, and compliance. Helping Indian businesses stay compliant.
Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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