Tax and Legal Compliance for Businesses in India 2026: GST, TDS, and ROC Filings Explained Simply

If you run a business in India, your business tax and legal compliance mostly comes down to three things: GST returns, TDS, and yearly ROC filings. File each one on time and you avoid most penalties. The big rule: GST needs registration once your turnover crosses ₹40 lakh for goods or ₹20 lakh for services (the service limit drops to ₹10 lakh in a few special states like Manipur, Mizoram, Nagaland and Tripura). Below that, you usually do not need GST at all.

Once you have GST, the two regular returns are GSTR-1, which lists your sales, due by the 11th of the next month, and GSTR-3B, your summary plus tax payment, due by the 20th. Miss them and the late fee is ₹50 per day (₹20 per day for nil returns), plus 18% interest per year on unpaid tax. Small businesses with turnover up to ₹5 crore can use the QRMP scheme and file quarterly instead.

If your turnover crosses ₹2 crore, you also file the yearly GSTR-9, due by 31 December. Businesses with turnover up to ₹2 crore are now exempt from it.

TDS applies when you pay salaries, rent, contractors or professionals above set limits. You cut a small slice of tax and pay it to the government by the 7th of the next month (by 30 April for tax deducted in March). The TDS return is filed every quarter, and the January to March quarter is due by 31 May. Late filing costs ₹200 per day under Section 234E (capped at the TDS amount), and late payment adds 1.5% interest per month.

For private limited companies, the yearly ROC filings with the Ministry of Corporate Affairs matter most. After your AGM, you file AOC-4 (financial statements) within 30 days and MGT-7 (annual return) within 60 days. The penalty here is harsh: ₹100 per day per form with no upper cap, so a few missed months can run into lakhs.

The smart move is simple. Put every due date in a calendar, keep clean records, and use a CA for the company filings. This is general information, not tax or legal advice, so check the official GST, Income Tax and MCA portals or a qualified professional before you act.

GST by the 11th and 20th, TDS by the 7th, ROC after your AGM: file on time and you skip almost every penalty.